FDI in China hits lowest level since 1993

FDI inflows to China slow to a crawl: Foreign direct investment in China in 2023 hit itslowest level in three decades on the back of slow post-pandemic recovery and a spiraling property crisis, writes the Financial Times.

By the numbers: Direct investment liabilities — a gauge that measures foreign capital inflows — were down 82% y-o-y in 2023 at USD 33 bn — its lowest since 1993, according to government data cited by the salmon coloured paper.

But it’s not just the economic crisis driving investors away: Beijing has cracked the whip on foreign consultancies in recent months to prevent them from sharing basic information — such as in a televised police raid of NYC-based Capvision — alleging “national security” concerns. The crackdown has made it difficult for foreign investors to access needed information on potential acquisitions or suppliers.

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THE CLOSING BELL-

The ADX fell 0.2% yesterday on turnover of AED 1 bn. The index is down 1.8% YTD.

In the green: Abu Dhabi National Company for Building Materials (+6.5%), RAK Company for White Cement and Construction Materials (+4.6%) and National Bank of Ras Al Khaimah (+4.6%).

In the red: Abu Dhabi National Hotels (-2.8%), RAPCO Investment (-2.6%) and Pure Health Holding (-2.3%).

Over on the DFM, the index was up 0.3% on turnover of AED 297 mn. Meanwhile Nasdaq Dubai closed up 0.1%.

CORPORATE ACTIONS-

Sharjah Islamic Bank will pay out AED 323.5 mn in dividends to its shareholders for 2023, after the general assembly approved the board’s proposal, Sharjah24 reports.