A CAPITAL DRAGON INDEX 2011

How fast is China Globalizing : Tracking Chinese Outbound Investments

The A CAPITAL DRAGON INDEX™ is the first index tracking Chinese outbound investments globally. It aims to be the reference indicator of Chinese ODI and will track the globalization rate of the Chinese economy since WTO accession in 2001. It is published quarterly by A CAPITAL own research team and measures the growth rate of Chinese outbound investment stock relative to China’s GDP.
Planets

Analysis

The A CAPITAL DRAGON INDEX™ shows that over the past 10 years China’s ODI doubled as a share of its GDP.

A CAPITAL DRAGON INDEX™ dropped during 2001-2003, from 1000 to 765, demonstrating a pause in China's globalization efforts. The “Go Global” Strategy, launched in 1999, was reinforced with the 11th 5-Year Plan: since then China’s ODI accelerated with the A CAPITAL DRAGON INDEX™ soaring from 1295 in 2007 to 2069 points in 2010.

2011 marks a slight drop in the Index from 2069 to 2015 points, due to overperforming Chinese growth but may also be a sign of caution of Chinese investors towards volatile markets and increased discernment regarding investment opportunities.

A CAPITAL anticipates the Index to hit 4400 in 2016 during the 12th 5-Year Plan (same 16.9% annual increase as in 2007-2010), meaning additional 800 billion USD Chinese ODI over the next 5 years.