BEIJING, Oct 07 (Xinhua): China's accumulated outbound direct investment (ODI) reached over 1.8 trillion US dollars by the end of 2017, moving up to the second place in the world rankings, according to an official report.
"China has made investment in 189 countries and regions globally, with its accumulated ODI accounting for 5.9 per cent of the world's total," said Zhang Xingfu, an official with the Ministry of Commerce (MOC).
The report, published by the MOC, National Bureau of Statistics and State Administration of Foreign Exchange, also showed that China's ODI reached 158.29 billion dollars in 2017 alone, ranking the third in the world, following the United States and Japan.
However, the volume declined 19.3 per cent year on year, falling for the first time since 2003.
Chinese authorities have reinforced scrutiny of the authenticity and compliance of ODI since the end of 2016, especially of projects which were not about real economy or neglected environmental protection, energy consumption and safety.
Zhang said such scrutiny rendered investors more mature and rational, contributing to the upgrading structure in ODI.
Chinese companies will continue to invest overseas, said Zhang, adding that China wishes to achieve mutual development with host countries and people and to foster global economic growth.
In addition, Chinese outbound investment saw diverse industrial layout, according to the report.
Investment in six sectors accounted for 86.3 per cent of the country's accumulated ODI, namely, sectors of leasing and business services, wholesale and retail, software and information technology service, finance, mining, and manufacturing.
Chinese investment in both Europe and Africa saw an over 70-per cent increase in 2017, with the former reaching a new record high to 18.46 billion US dollars, said the report.
During the same period, investment in countries along the Belt and Road accounted for over 12 per cent of China's ODI, up 31.5 per cent year on year.
Meanwhile, China's central bank announced on Sunday it would reduce the reserve requirement ratio (RRR) for most banks by one percentage point, the fourth time this year the country has sought to free up credit for businesses as they face down $250 billion in US tariffs.
The move to cut the amount of cash which most commercial and foreign banks must hold in reserve, to repay loans obtained via the central bank's medium-term lending facility, will take effect on October 15.
The decision is intended to "further encourage the stable development of the real economy, optimise the liquidity structure of commercial banks and financial markets, lower financing costs, and to continue increasing the financial systems' efforts to support small businesses, private enterprise and innovation," the People's Bank of China said in a statement.
The move will be used to pay down 450 billion yuan ($65.6 billion) of medium-term lending facilities, it said, adding that it could also free up another 750 billion yuan in funds.
The move is not expected to put depreciatory pressure on the yuan, the statement said, adding that the bank would continue to maintain a "prudent and neutral" monetary policy.
