MercoPress. South Atlantic News Agency

Chinese foreign investment totals 44.9 billion US dollars

Chinese financial institutions invested overseas 5.65 billion US dollars during eleven months of 2005, which is above the 5.5 billion for the whole of 2004, reported Monday the Ministry of Commerce in Beijing.

In an official release the ministry said 66% of the investment went to Asian countries.

Beijing has made if official policy to encourage Chinese companies to invest overseas to ensure resources, brands and market shares.

Overseas investment also helps China unload much of the US dollars it holds from trade surplus and massive foreign investments, thus taking pressure from the Yuan.

Chinese total overseas investment towards the end of 2004 was 44.9 billion US dollars according to the Commerce Ministry, with over 90% in information technology, telecommunications, mining and manufacturing.

Most of the investment was done by big government owned and private companies with a minimum share from small and medium sized enterprises, which is also expanding.

Fusions and acquisitions represented 55% of investments during the first eleven months of 2005.