Implications of China’S Foreign Direct Investment (Fdi) on the Performance of the Philippine Stock Market: A Longitudinal Study (2014-2024)

Abstract

This study examines the implications of China’s Foreign Direct Investment (FDI) on the performance of the Philippine stock market from 2014 to 2024. Utilizing a descriptive quantitative research design, it analyzes trends in Chinese FDI inflows alongside market participation, investor profiles, and account growth—focusing on both local and foreign investors. Secondary data were obtained from the China Statistical Yearbook and the Philippine Stock Exchange, Inc. annual reports. The study applies statistical tools, including mean, frequency, percentage, and regression analysis, using SPSS to ensure analytical accuracy. The results show that Chinese FDI followed an upward but cyclical trend that aligned with shifts in global and domestic conditions, while the Philippine stock market saw rising local participation and rapid digital account growth. A significant positive correlation was found between Chinese FDI and total market accounts, and a moderate positive link emerged with market performance, indicating that foreign capital supports liquidity and investor confidence. Although FDI had only modest effects on investor profiles, it contributed to a more active investment environment. These findings support recommendations to strengthen FDI governance, diversify Chinese investments into high-impact sectors, enhance digital market infrastructure, and promote partnership-driven, long-term investment strategies.