Foreign investment in China dropped to its lowest in nearly four years this November, reflecting the impact of geopolitical tensions and economic slowdown. The country received RMB53.3bn (USD7.5bn) in utilized foreign capital, a 19.5% decrease from the previous year, marking the weakest performance since the onset of the COVID-19 pandemic in February 2020. Year-to-date, investment fell by 10% to RMB1.04tr. Bank of America economists highlight the challenging global economic environment as a deterrent to cross-border investment into emerging markets like China. Meanwhile, other data suggest a reduction in foreign firms' reinvestment of profits, contrasting with slight signs of recovering interest in the Chinese market as global funds increased yuan-denominated bond holdings.
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