Chinese Investments in US Reaches Record $18.4 Billion in First Half of 2016
Christian George Acevedo | | Jul 25, 2016 10:37 AM EDT |
(Photo : Getty Images.) Dalian Wanda Group acquired Legendary Pictures this year.
Chinese investments in the U.S. reached an all-time high of $18.4 billion in the first half of 2016. This is more than triple the amount of investments poured into the American market in the first half of 2015, a statement by Rhodium Group said.
Chinese firms invested about $6.4 billion in the same period last year. Their total investments in 2015 amounted to $15.3 billion.
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The increasing inflow of Chinese money into the American market is primarily driven by private sector acquisitions. About 55 mergers have taken place already in various sectors, ranging from services and technology to consumer-oriented assets, real estate, and manufacturing, Forbes reported.
Chinese acquisitions are expected to increase to between $20 billion-$30 billion before the year ends, The Wall Street Journal reported.
Some financial analysts have inferred that the flow of foreign direct investments from China comes as a retort to fluctuating exchange rates and the depressed economic and political situation in China. About 80 percent of all Chinese FDI transactions are categorized by analysts as strategic investments.
Haier's $5.6 billion acquisition of General Electric's appliance division is so far the largest American deal closed by a Chinese firm this year. The deal was closed in June.
There are still pending mergers and acquisitions amounting to $23 billion, Rhodium Group revealed. This includes Ingram Micro's acquisition by Chinese aviation and shipping conglomerate HNA Group. Meanwhile, Anbang Insurance Group is poised to take over Strategic Hotels for $6.5 billion.
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