(Yicai) Sept. 9 -- Chinese firms ramped up outbound investment in the first half of the year, with the highest activity directed toward the Association of Southeast Asian Nations, according to a newly launched index compiled by chambers of commerce.

From January to June, the outbound investment index of Chinese enterprises reached 142, based on the first dedicated gauge released by the China International Contractors Association (CHINCA) and six other industry groups at the 25th China International Fair for Investment & Trade yesterday.

The composite figure includes a sub-index of 137 for actual investment and 149 for investment willingness. Outbound investment covers activities such as setting up factories overseas and acquiring financial assets like bonds.

The new metric complements official data from government bodies, offering market participants more industry-led perspectives on investment flows. The index uses the weighted monthly average from 2018 to 2022 as a baseline of 100. A reading between 110 and 140 indicates relatively high activity, while a figure above 140 signals very high activity.

ASEAN emerged as the most active destination, with a reading of 255 in the first half, maintaining elevated levels for 16 consecutive months. The European Union and BRICS countries followed with readings of 176 and 142, respectively, both falling within the highly active range.

By sector, manufacturing (183), mining (182), wholesale and retail trade (181), and transportation and warehousing (160) showed the strongest outbound investment activity. Scientific research and technical services, as well as software and information technology services, also saw relatively high levels of investment.

The seven industry associations will publish the index monthly to provide companies with data-driven insights and guidance on outbound investment, Fang Qiuchen, chairman of CHINCA, told Yicai.

Fang added that the index reflects current trends in outbound investment and helps quantify investment popularity across industries and countries. It also offers a policy reference to prevent overinvestment and resource waste.

Chinese firms have shown growing interest in expanding overseas. China's outbound foreign direct investment totaled USD192.2 billion last year, an 8.4 percent increase from 2023, according to a report released during the CIFIT by the commerce ministry and other agencies. China accounted for 11.9 percent of global FDI in 2024, up from 11.4 percent the previous year.

As of Dec. 31, 2024, China’s cumulative outbound FDI reached USD3.1 trillion, the report noted.

Editors: Dou Shicong, Emmi Laine