BEIJING, May 13 (Xinhua) -- China's outbound investment (ODI) continued to decline due to the continuous impact of the COVID-19 pandemic and Europe is still the most popular investment destination for Chinese enterprises, said a report recently released by Ernst & Young (EY).
According to the report on China's outbound investment in the first quarter of 2020, the announced China's overseas M&As fell by 78 percent on year. The announced China overseas M&As hit the lowest value in a single quarter over the past 10 years.
Europe was the most popular overseas M&A destination for Chinese enterprises, with the announced M&A deal value accounted for over 40 percent of the total. All continents recorded significant declines in deal values except Africa, while the Netherlands and Malaysia emerged as Chinese investors' most favored overseas M&A countries.
Technology, media & entertainment and telecommunications (TMT) was the most favored investment sector with a significant growth in proportion, accounting for nearly 40 percent of the total. Other key sectors include real estate, hospitality and construction (RHC), advanced manufacturing and health and life sciences sectors.
China's ODI development structure remained diversified, and B&R investment kept gaining momentum, the report found.
According to China's Ministry of Commerce, China's overall ODI amounted to 25.68 billion dollars, down 2.8 percent on year; non-financial ODI was 24.2 billion U.S. dollars, down 3.9 percent on year, and mainly invested in leasing and business service, wholesale and retail, manufacturing and mining sectors.
In the same time period, B&R non-financial ODI reached 4.2 billion dollars, up 11.7 percent on year, accounting for 17.3 percent of the total, 2.4 percentage points higher than that of last year, and mainly invested in countries and regions such as ASEAN, Kazakhstan and UAE.
(Edited by Yang Qi with Xinhua Silk Road, firstname.lastname@example.org)