China sees record outbound financial assets expansion in 2016

Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a bank in Beijing, China, March 30, 2016. [Photo/Agencies]

BEIJING - China saw record expansion of outbound financial assets in 2016 as domestic investors bought overseas assets.

Outbound direct investment grew by $211 billion in 2016, up 12 percent, according to the State Administration of Foreign Exchange (SAFE).

Overseas securities investment grew by about $100 billion, up about 30 percent, while foreign deposit, loan and trade credit more than doubled.

China continued to see strong inbound foreign direct investment, attracting about $153 billion, while inbound securities investment more than quadrupled, the statement said.

The capital and financial account registered a deficit of $37.6 billion in 2016 but is expected to narrow in 2017.

The SAFE expects increasing foreign investment and more rational overseas asset allocation by domestic investors.