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China says investment overseas up sharply

China says investment overseas up sharply

China's investments overseas nearly tripled from a year earlier to $20.5 billion in the third quarter as companies snapped up mining and oil assets, government data showed Tuesday.
Beijing is encouraging its companies to invest abroad to diversity an economy driven by exports and investment and to take advantage of sharp declines in asset prices due to the global economic crisis.
Outward investment for the July-September quarter was up 190 percent from the same period of 2008 and 135.3 percent from the previous quarter, the Commerce Ministry said. Its figures do not include investment in bonds and other financial instruments.
Chinese companies are flush with cash after the country's economic boom and have largely avoided the financial turmoil that has battered Western companies. Economic growth accelerated to 8.9 percent from a year earlier in the third quarter.
In the first nine months of the year, 43.5 percent of outbound investment was purchases of stakes in existing foreign companies, many of them in mining and manufacturing, the Commerce Ministry said.
Major investments included purchases of oil and mining assets, mainly by state companies that hope to profit from future demand.
In July, Beijing's main sovereign wealth fund, China Investment Corp., paid $1.5 billion for a 17 percent stake in Canadian mining Teck Resources Ltd. Last month, the fund paid $949 million for 11 percent of JSC KazMunaiGas Exploration Production, a subsidiary of Kazakhstan's main state oil company.
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Associated Press researcher Bonnie Cao in Beijing contributed to this report.
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Updated : 2021-06-20 11:16 GMT+08:00