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在线翻译:
szdaily -> Business_Markets -> 
Chinese investment in US drops sharply
    2018-06-22  08:53    Shenzhen Daily

INVESTMENT from China in the United States slumped in the first five months of the year as the U.S. Government intensified its scrutiny of Chinese projects and China pressured big-spending firms to sell assets as part of its campaign to reduce debt risks.

According to data compiled by New York-based Rhodium Group, Chinese net direct investment into the United States was negative by some US$7.8 billion as of the end of May.

Chinese firms invested only US$1.8 billion in greenfield projects and acquisitions in the United States between January and May, a drop of 92 percent from the same period in 2017, Rhodium Group said Wednesday.

Meanwhile, Chinese investors in America completed US$9.6 billion worth of divestitures, with another US$4 billion in sales pending, it said.

The drop in investment so far this year follows a steep fall last year as the Chinese Government cracked down on bubbly outbound investment and the U.S. Government cranked up its scrutiny of Chinese acquisitions while adopting a more confrontational stance toward China.

Many of the Chinese firms that led a boom in investment in 2015-2016 — including HNA, Dalian Wanda and Anbang — have divested their overseas holdings due to a broader financial tightening in China that is limiting the rollover of debt financing as well as specific regulatory action to reduce the leverage of systemically important private firms.

HNA sold off several of its U.S. assets, including office buildings in New York and San Francisco and its stake in Hilton Worldwide.

A number of deals, including Ant Financial’s proposed US$1.2 billion acquisition of Moneygram and HNA’s US$200 million investment in Skybridge Capital, were killed by the Committee on Foreign Investment in the United States, or CFIUS, in the first half of the year.

Rhodium also noted in the report upcoming new legislation that will enhance the scope of CFIUS scrutiny would raise hurdles for other types of investments such as venture capital.

The outlook for Chinese foreign direct investment in the United States was bleak, but there could be a silver lining in the brewing trade war between the two countries, it said.

“The volume and value of newly announced transactions suggest that Chinese investment levels in the United States will remain low in coming months,” Rhodium said. (SD-Agencies)

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