Chinese enterprises' outbound direct investment (ODI), led by infrastructure construction, showed strong momentum in the first half of 2015, a report released by consultancy EY on Tuesday showed.
The report said that the financial sector has played a crucial role in helping pave the way for Chinese enterprises' overseas expansion.
The report said that Chinese investors accelerated their "going out" in 2015, and ODI grew to be on par with inbound investment.
First-half ODI totaled $56 billion, up 29.2 percent, making it likely to outperform the ODI growth target of 10 percent for the year. ODI is expected to continue to grow by about 10 percent annually in the next five years, according to the Ministry of Commerce.
However, Loletta Chow, an overseas investment specialist at EY, said enterprises should not ignore the possible challenges and risks of going abroad, especially the geopolitical complexities in the varied political, economic and regulatory environments in the countries and regions involved in the "One Belt, One Road" initiative.
EY said appropriate financial support is crucial for enterprises involved in ODI. Overseas investments, especially large ones such as infrastructure investments, require substantial capital support, but financing is often a challenge due to the rigorous conditions and limited channels, it said.
As the ODI of these enterprises matures, they will need not only the traditional financial services such as loans, deposits and settlements, but also more diversified services such as investment banking and third-party agency facilities.
