What is the concept of DEI (Direct External Investiment).?

Question

How is it different from ordinary int`l investiments.?

Answer 1

The meaning of "direct" investment is when the investor has a substantial effect on the runnnig of the business invested in. If a UK resident buys HK$10000 of shares on the Hong Kong stock exchange, that's indirect investment (into China). If a UK registered company takes over a company in Hong Kong, that's direct investment.

Usually, the mine is drawn at 30%, ie if a foreigner buys 30% or more of the shares of a business, that's direct investment. The reason for this arbitrary-looking figure is that if you own 30% of a quoted company, in London anyway, you have to offer to buy the rest.