Shanghai tops Chinese ranking of finance centres for inward FDI
Shanghai is China’s biggest international financial centre in terms of inflows of foreign direct investment, while Beijing tops the table for outflows, The Banker reports.
Shanghai is the Chinese financial centre that has attracted the largest inflows of foreign direct investment (FDI) in the country. A total of 21 projects worth US$1.58bn reached the city’s financial services sector in the 12 months to the end of April 2015, according to estimates by database fDi Intelligence.
Shanghai retained its leadership in this field but in total number of projects and capital expenditure, the figures were lower than the previous year – a reflection of China’s weakening economic growth. Over the 12 months to April 2014, the financial hub attracted 26 projects worth US$2.17bn.
Taiwanese leasing provider Chailease Group made the largest individual investment, in a deal estimated to be worth US$280m and which aims to expand the company’s presence in China. The project – done in March 2015 – was the largest recorded over both periods.
It is followed by Singapore-based OCBC Bank’s US$163.45m investment to set up offices in Shanghai, and by US precious metal transporter Malca-Amit’s US$120m to open storage facilities, also in Shanghai. The projects began about two years ago, in September and November 2013, respectively.
Beijing leads the outflows FDI table, with 30 projects and $746.3m spent in the year to the end of April. In contrast with the inflows data, these figures are higher than the previous period, when 10 projects and $244.8m were directed from China’s capital to other financial centres.
Bank of Communications’ new representative office in Brazil was the largest single investment to leave Beijing over both periods, in a project estimated to be worth $280m.
