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* Foreign direct investment may rise in 2020 on modestgrowth

* Investment into Hong Kong nearly halved last year - UNCTAD

* US remains largest FDI recipient worldwide, China next

By Stephanie Nebehay

GENEVA, Jan 20 (Reuters) - Global direct foreign investment(FDI) dipped slightly around the world last year, hit by massivedivestment in Hong Kong and a drop in flows into Britain due toBrexit uncertainty, the United Nations said on Monday.

FDI could rise marginally in 2020 on the back of modestgrowth as trade tensions between China and the United Statesease, but geopolitical uncertainties and protectionist pressuresare tempering expectations, it said.

In 2019, global FDI flows were estimated at $1.39 trillion,down 1% from a revised $1.41 trillion in 2018, the U.N. tradeand development agency UNCTAD said in a report.

FDI, which includes cross-border mergers and acquisitions(M&A), intra-company loans and investments, is a bellwether ofglobalisation and a potential sign of future growth of corporatesupply chains.

Investment flowing into the Chinese territory of Hong Kong,the Asian financial hub that has been wracked by politicalunrest, nearly halved last year to $55 billion, the report said.

"In Hong Kong there was $48 billion of divestment in termsof equity," James Zhan, UNCTAD's senior director of investmentand enterprise, told Reuters. He noted that the former Britishcolony was also affected by Sino-U.S. trade tensions.

Competition from Shanghai and Shenzhen in mainland China aswell as Singapore for high-end FDI, such as regional businesshub functions and R&D activities of multinationals, also weighson Hong Kong, he said.

"Hong Kong's economy is a solid economy. Longer term-wise,it is attractive for international investment," Zhan said.

Britain, beset by uncertainty last year over the outcome ofBrexit but now on course to leave the European Union on Jan. 31,saw inward FDI flows shrink by 6% to an estimated $61 billionlast year, according to the report.

FDI flows to developed economies fell by 6% last year to anestimated $643 billion, and remained at a historicallylow-level, at half of their peak in 2007, it said.

FDI to the EU as a whole fell by 15% to $305 billion, asseveral countries experienced "strong volatility", it said.

The EU and some member states have tightened their FDI entryscreening, particularly over "national security concerns", Zhansaid, and this could deter some FDI especially in technology.

Flows to the United States, the largest FDI recipientworldwide, were stable at $251 billion. The report said theimpact of a 2017 U.S. tax reform that reduced U.S. outward FDIflows appears to have ebbed.

FDI flows to developing economies remained stable at anestimated $694 billion, led by China with a flat $140 billion.

(Reporting by Stephanie NebehayEditing by Mark Heinrich) ((Stephanie.Nebehay@thomsonreuters.com; +41 58 306 2161;Reuters Messaging:stephanie.nebehay.thomsonreuters.com@reuters.net; twitter@StephNebehay))