Following the slowdown in the growth of foreign investment in China and the rapid growth of outbound investment, in the first five months of the year, China has seen a deficit of USD 19.33 billion in the non-financial direct investment sector.

The research team at ANBOUND Consulting is of the view that the deficit in China's investment is expanding and the government should be wary of such trend because currently China’s economy is troubled with various issues, once the risk event occurs, it is entirely possible that this might trigger massive capital outflows, causing systemic risk in the domestic market.