China’s Foreign Investment Gauge Declines to 25-Year Low (1)

One measure of new foreign investment in China fell to the lowest level in 25 years in the second quarter, fueling concerns about how much geopolitical tensions and the economy’s slowing recovery can hurt business confidence.

Direct investment liabilities — a gauge of foreign direct investment in China — slumped to just $4.9 billion in the April-June period, according to figures released by the State Administration of Foreign Exchange on Friday. That was down 87% from the same period last year and was the smallest amount in any quarter in data back to 1998.

“The plunge in the FDI ...