Foreign investment up by 15% in April
By Wang Yanlin |
May 18, 2011, Wednesday
|
Print Edition
Print Edition
FOREIGN direct investment in China increased 15.21 percent from a year earlier to US$8.46 billion in April, the Ministry of Commerce said yesterday.
That was less than half of March's rapid 32.9 percent growth rate.
With the conclusion of the United States quantitative easing policies in June, China may see less speedy inflow of foreign investment, analysts said.
Between January and April, foreign investment gained 26.03 percent year-on-year to US$38.8 billion.
"Judging from the data in the first four months, China remains an attractive destination for foreign investment," said Xu Weihong, an analyst at Guodu Securities Co. "It is based on China's stable political climate, fast economic growth, improved business environment and the charm of a vast domestic market."
Tim Harcourt, chief economist at the Australia Trade Commission, said investment in China was safer than elsewhere.
But he still cautioned investors that there were some risks, including China's inflation, rising currency and changing demography.
Slower speed
Xu said that with the US ending its relatively loose policy stance, foreign investment in China may grow at a slower speed.
"But it's better for China's economy because there may be less speculative money pouring into the country."
Investment from the US had already dropped by 28 percent in the first four months to US$1.02 billion, the ministry said.
With China's efforts to rely more on domestic consumption to drive the economy, more foreign investment has been directed into the services sector.
Through April, foreign investors pumped US$18.2 billion into China's services industry, up 31.2 percent from a year earlier and accounting for 47 percent of the total value.
While foreign investment is steadily flowing into China, outbound foreign investment also grew quickly.
In the first four months, China's outbound non-financial foreign direct investment expanded 17.5 percent from a year ago to US$13.4 billion, faster than the 13.2 percent in the first quarter.
Mergers and acquisitions have become a major target of China's outbound investment, according to the ministry.
That was less than half of March's rapid 32.9 percent growth rate.
With the conclusion of the United States quantitative easing policies in June, China may see less speedy inflow of foreign investment, analysts said.
Between January and April, foreign investment gained 26.03 percent year-on-year to US$38.8 billion.
"Judging from the data in the first four months, China remains an attractive destination for foreign investment," said Xu Weihong, an analyst at Guodu Securities Co. "It is based on China's stable political climate, fast economic growth, improved business environment and the charm of a vast domestic market."
Tim Harcourt, chief economist at the Australia Trade Commission, said investment in China was safer than elsewhere.
But he still cautioned investors that there were some risks, including China's inflation, rising currency and changing demography.
Slower speed
Xu said that with the US ending its relatively loose policy stance, foreign investment in China may grow at a slower speed.
"But it's better for China's economy because there may be less speculative money pouring into the country."
Investment from the US had already dropped by 28 percent in the first four months to US$1.02 billion, the ministry said.
With China's efforts to rely more on domestic consumption to drive the economy, more foreign investment has been directed into the services sector.
Through April, foreign investors pumped US$18.2 billion into China's services industry, up 31.2 percent from a year earlier and accounting for 47 percent of the total value.
While foreign investment is steadily flowing into China, outbound foreign investment also grew quickly.
In the first four months, China's outbound non-financial foreign direct investment expanded 17.5 percent from a year ago to US$13.4 billion, faster than the 13.2 percent in the first quarter.
Mergers and acquisitions have become a major target of China's outbound investment, according to the ministry.
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