Foreign direct investment in China in December fell by 5.8%

Moscow. January 20. Foreign direct investment (foreign direct investment, FDI) in China in December of 2015 decreased by 5.8% compared with the same month of the previous year, according to official data. The volume of FDI amounted to 77 billion yuan ($12 billion).

Experts surveyed by Bloomberg on average expected increase of 3.1%. In November it increased by 1.9%.

By the end of 2015 the volume of FDI grew by 6.4% to 781,35 billion yuan.

At the same time, foreign investment in non-financial assets in December jumped by 6.1%.

The weakening of the Chinese yuan is forcing investors to withdraw money from the country, while investors planning investments in China, are sitting on the fence, experts say.

“Foreign investors will postpone investments for fear of a sharp weakening of the yuan, says economist Banco Bilbao Vizcaya Argentaria Xia Lai. – Why not wait, if in the future for the same amount in dollars, you can get more RMB?”.

The yuan exchange rate against the US dollar fell last week to the lowest level in five years, last year the Chinese national currency has fallen nearly 6%.