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Foreign Investment in China Up 32.2% in February

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Foreign Investment in China Up 32.2% in February

By - Wednesday 16 March 2011

Overseas investment in China climbed by 32.2 per cent in February compared to the same period a year previously, official data has shown.

However, despite the year-on-year rise, it still remained below the level of activity recorded during January, the commerce ministry said. In total, USD 7.8 billion worth of foreign investment was seen in China last month, compared with USD 10.03 billion at the start of the year.

And, according to analysts, robust economic growth and forecasts for a stronger currency have been the main drivers behind the increasing investor interest so far in 2011, with many individuals hoping for a better return on their money.

However, over the course of the past 12 months, the government has been trying to reduce the volume of money flowing into the economy as inflation rises.

During 2010, foreign direct investment in China reached a record USD 105.7 billion, with more than 20 per cent of the cash being spent in the country's real estate sector.

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