As a Follow up to My last Article on China: China FDI Drops 1% vs. Expected +5%

by John Galt
June 12, 2016 19:20 ET

As a follow up to my last article, the news out of China this morning was not good. In fact it validates the concerns foreign investors have about the viability of keeping money parked inside the communist behemoth where risk is defined not by markets but government whims.

Foreign Direct Investment in China dropped 1% instead of rising the predicted 5% that economists expected.

These highlights from the release along with the chart from ForexLive tells the tale of woe:

  • +6.0% prev
  • Yuan 56.77 bln ($8.89bln)
  • Jan-May yy +3.8%
  • Yuan 343.55 bln ($54.19bln)
  • Services sector +7%, yuan 241.8bln #($38.2bln)
  • Mfg sector fell 3.2% in the Jan-May period, with the number totalling 28.8% of FDI.


Nothing like some crushed fortune cookies to ruin a Chinese meal..

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