SAFE Releases Flow of Direct Investments by Financial Institutions
OREANDA-NEWS. July 20, 2012. According to statistics released by the SAFE, in the first quarter of 2012 inflows and outflows of direct investments by overseas investors in domestic financial institutions amounted to USD660 million and USD40 million respectively, resulting in a net inflow of USD620 million, reported the press-centre of SAFE.
Outflows and inflows of overseas direct investments by domestic financial institutions amounted to USD1.55 billion and zero respectively, resulting in a net outflow of USD1.55 billion.
As of the end of 2011, the stock of direct investments by overseas investors in domestic financial institutions amounted to USD68.43 billion, while the stock of overseas direct investments by domestic financial institutions amounted to USD52.66 billion.
To further increase the transparency of exchange statistical data, from the beginning of 2012 the SAFE will release the flow amount of direct investment by financial institutions on a quarterly basis, and the stock amount of direct investments by financial institutions on a yearly basis.
Financial institutions refer to the headquarters, branches, and sub-branches of institutions engaging in banking, securities, insurance, and other financial businesses which are established within the territory of China according to the law.
Direct investments by financial institutions refer to equity investments by overseas investors in China s domestic financial institutions or equity investments by China s domestic financial institutions in overseas enterprises, which enable direct investors to have voting rights of 10 percent or more in the invested enterprises.
The table of direct investment flows by financial institutions exhibits the amounts of capital flows of overseas direct investments by China domestic financial institutions and direct investments in China absorbed from overseas institutions. Specifically, inflows of direct investments by overseas institutions refer to the investment capital or increased investments by overseas investors in China domestic financial institutions, outflows refer to the investment capital decreased or withdrawn by overseas investors from China domestic financial institutions; capital outflows of foreign direct investments refer to capital investments or increased investments by China domestic financial institutions in overseas enterprises, inflows refers to decreased or withdrawn capital investments by China domestic financial institutions from overseas enterprises.
The table of the stock of direct investments by financial institutions exhibits the stock amount of Chinese owners equity arising from foreign direct investments by domestic financial institutions and that of foreign owners equity arising from direct investments absorbed in China, including paid-up capital, undistributed profits, and so forth.
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