Photo: Ahn Young-joon / AP
Since the beginning of 2019, the Chinese company sold foreign assets worth $ 40 billion, and bought it — only 35 billion. For the first time since entering the world market of mergers and acquisitions China has become a net seller, the Financial Times writes, citing data from research firm Dealogic.
In 2015, China bought foreign assets by $ 100 billion, and sold — in ten billion. According to experts, such a sharp transition occurred against the backdrop of a slowing economy and a trade war with the United States.
Heaviest this year, the sale of assets occurs in the USA — 26 billion dollars since the beginning of the year. At the same time all sold last year there were only eight billion.
Another reason for such dynamics was the tightening policy of investing abroad by the Chinese authorities, which happened in 2017. Therefore, Beijing decided to deal with the withdrawal of capital and contain the debt burden of companies. The government felt that Chinese businesses too much is to purchase foreign assets, often a major transaction did not meet expectations and, according to experts, seemed illogical.
Economists from Harvard, the University of Munich and Kiel Institute for the world economy came to the conclusion that China is the largest creditor of the shadow world. They calculated that the top 50 borrowers the debt to China is at least 15 percent of GDP in 2017. The largest debts are found in Venezuela, Zimbabwe and Iran.
Video, photo All from Russia.