corporateasfen.blogg.se - Eiu shift exchange

The data highlight China’s shift away from its position as a generous lender to the emerging world towards a situation where it is now increasingly focusing on receiving repayments. From new kid on the block to concerned creditor This situation reflected a 29% reduction in net Chinese equity investments and a 48% drop in debt outflows from China to emerging countries in that year. Developing countries are now repaying more money to China than they receive in new disbursements.Ĭhina remains the biggest lender to emerging economies, but the country only accounted for 39% of financial flows to low- and middle-income states in 2019 (from almost half in 2018).

New data published by the World Bank show that China’s net financial flows (debt and equity investments) turned negative in 2019, at -US$1bn, compared with a peak of U$16bn in 2016.

Financial repayments to China will become an increasingly important issue for emerging countries in the coming years, fuelling mutual interdependence.

It is not clear whether this trend will persist after the pandemic Chinese financial outflows may recover in 2022 as global economic prospects brighten.

This situation reflects China’s increasing focus on getting repayments for its investments, amid concerns about previously poor lending decisions.

Emerging states are now repaying more money to China than they receive in new disbursements for Chinese debt and equity investments.In 2019 China became a net recipient of financial flows from developing economies.