Gold Rush in Overseas Investment AAnalysis and Discussion of ODI Banking Benefits

Exploring New Frontiers of Overseas Investment A Comprehensive Overview and Analysis of Banks' ODI Business

In recent years, with the acceleration of global economic integration and the increasing pace of Chinese enterprises going global, enthusiasm for overseas investment has continued to rise. Particularly against the backdrop of the deepening Belt and Road Initiative, more and more companies are expanding into international markets through Outward Direct Investment ODI. As an indispensable financial support force in this process, banks are playing an increasingly prominent role in ODI-related activities, serving as a crucial bridge connecting domestic capital with global markets.

1. The Current Landscape of ODI Business Financial Needs Behind the Boom

According to the latest data from the Ministry of Commerce, China’s total foreign direct investment across all industries grew by more than 12% year-on-year in 2025, with particularly notable increases in manufacturing, technology, and energy sectors. With the continued advancement of the Going Global strategy, ODI has become not only a key method for enterprises to acquire advanced technologies and expand markets, but also a catalyst for higher demands on supporting financial services.

As the core hub for cross-border capital flows, banks offer a wide range of ODI-related services, including cross-border settlement, financing support, foreign exchange management, and risk control. Especially in the current environment of heightened global financial market volatility and frequent exchange rate fluctuations, companies are placing higher expectations on banks’ comprehensive service capabilities in ODI projects.

2. A Holistic View of Banks' ODI Business From Capital Outflow to Project Implementation

ODI projects involve multiple stages, from initial overseas investment registration and capital outflow to subsequent project financing and account management. Throughout this process, banks are actively involved and provide the following key services

1. Compliance Review and Policy Consultation

Banks assist companies in completing the preliminary compliance checks for ODI projects and help them understand the regulatory requirements set by authorities such as the State Administration of Foreign Exchange SAFE and the National Development and Reform Commission NDRC, ensuring that investment activities align with national policies. For example, in 2025, SAFE further optimized facilitation measures for cross-border capital accounts, and banks played a critical role in interpreting and implementing these policies.

2. Cross-Border Settlement and Foreign Exchange Services

Capital outflow is one of the core components of ODI. Banks facilitate efficient and secure fund transfers by offering cross-border RMB settlement, foreign exchange conversion, and exchange rate risk management. In the current context of increased two-way RMB exchange rate volatility, tools such as forward foreign exchange transactions and currency options provided by banks help companies lock in exchange rate risks and reduce financial costs.

3. Project Financing and Syndicated Loans

For large-scale overseas investment projects, banks offer project financing, acquisition loans, and syndicated loans. For example, in 2025, a Chinese bank participated in multiple infrastructure projects along the Belt and Road countries, not only providing localized financing solutions but also forming syndicates with international financial institutions to effectively diversify risk and enhance financing efficiency.

4. Account Management and Fund Aggregation

After the overseas project is established, companies often need to set up subsidiaries or project companies abroad. Banks provide services such as multi-currency account opening, fund pooling, and cash management, enabling efficient and centralized financial operations overseas.

3. Competitive Advantages and Innovation Trends in ODI Banking

Compared to traditional domestic financial services, ODI banking offers broader international perspectives and demonstrates unique advantages in product innovation and service delivery.

1. Global Service Network Advantage

In recent years, major Chinese banks have accelerated their overseas expansion, building a global service network. For instance, Industrial and Commercial Bank of China ICBC and Bank of China have established branches in Belt and Road countries, offering localized and one-stop financial services for ODI projects, significantly improving service efficiency and response speed.

2. Technology Empowering Cross-Border Financial Services

With the development of financial technology, banks are actively integrating digital solutions into ODI operations. For example, blockchain is being used to enhance the transparency and efficiency of cross-border payments, while big data analytics supports the design of customized financing solutions. Some banks have launched online ODI platforms that enable end-to-end digital operations from project registration to capital outflow, significantly enhancing user experience.

3. Green Finance and Sustainable Investment Support

As global attention to sustainable development grows, green investment is emerging as a new trend in ODI. Some banks have begun to offer green financial products to support overseas investments in areas such as clean energy and environmental technology. For instance, in 2025, a Chinese bank provided green credit support for a solar power project in Southeast Asia, helping the company achieve its low-carbon development goals.

4. Outlook Opportunities and Challenges Coexist in ODI Banking

Although ODI banking holds significant growth potential, it also faces challenges. On one hand, rising geopolitical uncertainties and tightening capital controls in certain countries pose obstacles to cross-border capital flows. On the other hand, companies may encounter multiple risks during overseas investments, including compliance, tax, and cultural differences, which place higher demands on banks' comprehensive service capabilities.

Looking ahead, banks must further enhance their integrated financial service capabilities in ODI, strengthen collaboration with enterprises and other financial institutions, and promote a more efficient, compliant, and sustainable cross-border investment ecosystem. Additionally, banks should accelerate their digital transformation and improve the intelligence and personalization of their services to better meet the diverse needs of enterprises going global.

Conclusion

ODI banking is not only a vital support for enterprises expanding into overseas markets, but also a strategic lever for banks to enhance their international presence and overall competitiveness. In the evolving global economic landscape, the role of banks in ODI will become increasingly important, with their service capabilities and innovation power emerging as key determinants of the success or failure of overseas investments.