Will China’s ODI continue to grow and diversify in markets and sectors in 2014?

Consumer-related sectors such as automobile, agriculture, entertainment, technology and real estate are all positioned for growth, primarily due to government policies and more favorable financing opportunities. The mining and oil and gas industries have historically represented the majority of outbound merger and acquisition activity. However, the number of deals has begun to decrease, though volume remains strong.

China’s ODI is being driven by the need to secure energy, natural resources and new technology. The push for ODI is also powered by flush liquidity provided by Chinese banks, which are quickly expanding overseas along with their clients.