Chinaʹs increasing external wealth

• Published in: China's New Place in a World in Crisis p. 59
• Main Authors: Guonan Ma, Haiwen Zhou
• Format: Book Chapter
• Language: English
• Published: ANU E Press 31.07.2009
• Subjects: Accountancy; Assets; Balance sheets; Business; Business economics; Commercial production; Communications; Credit; Creditors; Domestic product; Economic disciplines; Economics; Finance; Financial accounting; Financial documents; Financial economics; Financial investments; Financial liabilities; Financial management; Financial statements; Foreign assets; Gross domestic product; Portfolio investments; Portfolio management; Production factors; Production output; Professional communication; Scholarly communication; Social sciences; Socioeconomics; Wealth; Working papers
• ISBN: 9781921536960; 1921536969

While balance of payments (BoP) statistics reflect cross-border flows over time, the international investment position (IIP) data record an economyʹs international financial assets and liabilities or its international balance sheet at a given point in time. Similar to BoP statistics, external assets and liabilities are classified by instrument into positions of direct investment, portfolio investment and other investment. There is an additional category of foreign reserves on the asset side. In a matter of less than 10 years, Chinaʹs net foreign asset (NFA) position—the difference between international assets and liabilities—has swung from being a net debtor of about