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Chinese FDI accounted for almost 39% of the total greenfield investments in 2023of the 36 countries in which the European Bank for Reconstruction and Development (EBRD) operates, jumping up from 5.1% in 2022, the EBRD said in its latest Regional Economic Prospects report (pdf).
“China is dwarfing FDI from Germany and the US,” the EBRD’s chief economist Beata Javorick told the Financial Times. The world’s factory put forward more than twice as much investment last year than the US and Germany combined, who each accounted for less than 8% of total investment.
The sudden splurge in investment may be more about circumventing US trade barriers than anything else: “China has tried to diversify production locations in terms of potential trade barriers,” Javorick told the salmon-colored paper. The Biden administration continued ramped-up trade tariffs on Chinese goods inherited from the previous administration and this week imposed additional tariffs on a further USD 18 bn worth of Chinese imports.
MARKETS THIS MORNING-
Asia Pacific markets are mixed this morning ahead of key economic data from China, which came out shortly before we hit “send” on the issue this morning, and mulled Singapore non-oil exports data. Meanwhile, Wall Street futures are solidly in the green after the Dow Jones broke the 40,000 mark for the first time.
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ADX |
9,039 |
+0.2% (YTD: -5.6%) |
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DFM |
4,085 |
-0.2% (YTD: 0.6%) |
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Nasdaq Dubai UAE20 |
3,510 |
-0.1% (YTD: -8.6%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.0% o/n |
5.5% 1 yr |
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TASI |
12,198 |
+0.8% (YTD: +1.9%) |
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EGX30 |
26,142 |
+3.3% (YTD: +5.0%) |
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S&P 500 |
5,297 |
-0.2% (YTD: +11.1%) |
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FTSE 100 |
8,438 |
-0.1% (YTD: +9.1%) |
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Euro Stoxx 50 |
5,072 |
-0.6% (YTD: +12.2%) |
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Brent crude |
USD 83.57 |
+0.4% |
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Natural gas (Nymex) |
USD 2.51 |
+0.7% |
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Gold |
USD 2,382 |
-0.2% |
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BTC |
USD 65,208 |
-1.23% (YTD: +47.6%) |
THE CLOSING BELL-
The ADX rose 0.2% yesterday on turnover of AED 1.1 bn. The index is down 5.6% YTD.
In the green: Foodco National Foodstuff (+12.5%), Agility Global (+7.0%) and Manazel (+4.5%).
In the red: Palms Sports (-10.0%), Aram Group (-7.4%) and Emirates Stallions Group (-3.8%).
Over on the DFM, the index fell 0.2% on turnover of AED 396.4 mn. Meanwhile Nasdaq Dubai closed down 0.1%.
CORPORATE ACTIONS-
Abu Dhabi National Takaful Co. approved a dividend payout of AED 31.5 mn for 2023, equivalent to 30 fils per share, according to an ADX disclosure (pdf).
