SAFE publishes the first quarterly report on inflow and outflow of direct equity investment in the financial institutions sector
On 30 May 2012, the State Administration of Foreign Exchange (SAFE) published on its website the quarterly statistical report (the SAFE Report) in respect of both inbound and outbound direct equity investment in the financial institutions sector (including e.g. banks, securities companies and insurance companies).
According to the SAFE Report, for the first quarter of 2012 the inflow of direct equity investment (e.g. capital injection) by overseas investors into China’s financial institutions sector reached USD 660 million whilst the outflow (by way of capital reduction or withdrawal) back to the overseas investors amounted to USD 40 million. During the same period, the outbound equity investment from Chinese domestic financial institutions was in the amount of USD 1.55 billion whilst the inflow back to the Chinese investors was zero. As explained in the SAFE Report, only statistics for investors holding at least 10 per cent voting rights in the invested entity were included.
The SAFE Report also stated that, as at the end of 2011, the total amount of foreign direct investment into Chinese financial institutions was USD 68.43 billion and outbound investment made by Chinese financial institutions was USD 52.66 billion.
This is the first time SAFE has published statistical report on the inflow and outflow of direct equity investment in the financial institutions sector. As mentioned in the report, SAFE will continue to publish the relevant inflow/outflow statistics on a quarterly basis and the aggregate amount annually.
For further information, please contact Sun Hong.
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