Overseas Asset Acquisition

Enterprise Cross-Border Asset Allocation Service Platform

Overseas Direct Investment & Asset Allocation Platform – ODI (Overseas Direct Investment)

– ODI (Overseas Direct Investment)

ODI denotes when Chinese enterprises and organizations directly invest overseas through establishing subsidiaries, M&A, equity participation, etc., following review and approval by relevant government departments. It is the legal and complied channel for Chinese companies to expand their business overseas through investment and mergers.

Regulatory
  • The Chamber of Commerce

    Overall review of overseas investment matters
    Issue the "Enterprise Overseas Investment Certificate"

    "Interim Measures for Foreign Investment Filing (Approval) Reports" (Shanghefa [2018] No. 24)

    "Measures for the Administration of Overseas Investment" (Order of the Ministry of Commerce, 2014 No. 3)

  • Development and Reform Commission

    It Mainly supervises the overseas investment of Corporations
    Industry flow and legal record.

    Measures for the Administration of Overseas Investment by Enterprises (Decree No. 11, 2017)

    Answers to frequently asked questions overseas, 61 questions (2018.06)

  • Administration of Foreign Exchange

    It mainly supervises capital outflows.

    "Regulations on Foreign Exchange Administration of Overseas Direct Investment by Domestic Institutions" (Huifa [2019] No. 30)

    "Foreign Exchange Notice for Overseas Investment, Financing and Return Investment" (Huifa [2014] No. 37) AndQuestions and Answers on the No. 37 Reform Policy (2018.01)

ODI has become the most important method of overseas investment

In 2019, China’s foreign direct investment was US$136.91 billion, a year-on-year decrease of 4.3%, second only to Japan (US$226.65 billion).

In 2019, China's outbound mergers and acquisitions grew steadily, and companies implemented 467 outbound M&A investment projects (compared to 2018 Annual increase of 34), involving 68 countries and regions, the actual transaction volume was 34.28 billion US dollars.

In 2019, overseas Chinese companies performed well, with more than 70% of them making profits or remaining flat and reinvesting their earnings US $60.62 billion, accounting for 44.3% of China's outbound direct investment flows in the same period, and the investment ratio reached a record high.

ODI has become the most important method of overseas investment

Driven by major factors such as the “Belt and Road” construction and international production capacity cooperation, China’s foreign direct investment has grown rapidly. Especially when global capital flows are slowing down, overseas investment by Chinese companies has maintained a strong growth momentum.

The average annual growth rate of China’s foreign investment from 2002 to 2019 was as high as 26%, and the cumulative flow from 2013 to 2019 reached 1011.03 billion US dollars, accounting for 46% of the stock of foreign direct investment.

ODI has a long history, and the stock is very large

At the end of 2019, China’s foreign direct investment reached US$2.2 trillion, second to the United States (US$7.7 trillion) and the Netherlands (US$2.6 trillion).

At the end of 2018, China's foreign direct investors (domestic investors) reached 27,100.