In the report we look at the prospects for GDP growth in the light of the first quarter GDP figure of 7.4 percent, which is below the government’s 2014 target, and consider what impact the “mini-stimulus” measures may have.
Although overall Outbound Domestic Investment (ODI) in the first quarter was down on a year-on-year basis, we saw an increase in M&A activity with deals of significant size in the high-tech, telecom, industrial goods, and agriculture sectors, as China seeks to upgrade industrial and market competitiveness. Meanwhile, following a number of recent policy announcements, the process for Chinese companies to invest in overseas markets should be significantly simplified. First quarter foreign direct investment (FDI) increased by 5.5 percent year-on-year, buoyed by the service industry’s significant 21 percent year-on-year growth. Interior regions of China continue to see growth in FDI activity although coastal areas are still the primary destination overall.
© 2020 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in China, KPMG, a Macau partnership and KPMG, a Hong Kong partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.