Chinese Investment in the Greater Europe Zone

Investments are financial flows that purchase financial and productive assets. Foreign investments are investments in enterprises that operate outside the domestic territory of the investor. These can be classified in two ways: (1) foreign portfolio investments are financial flows that enter equity or bond markets, possibly for a short time, and market prices are usually a fundamental driver for the foreign investor; (2) foreign direct investments (FDIs) involve significant foreign ownership (at least 10 per cent of voting stock) of productive assets. Inward FDI is defined as capital entering an economy attracted by favourable economic factors; outward FDI (sometimes noted as outward direct investment or ODI/OFDI) is a flow of capital moving abroad.