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China foreign investment up 19% in Sept

(Agencies)
Updated: 2009-10-15 11:30

SHANGHAI: Foreign direct investment in China continued to recover in September, rising 19 percent from a year earlier to $7.9 billion, the Commerce Ministry said Thursday.

However, actual foreign direct investment for the first nine months of the year totaled $63.8 billion, a 14 percent decline from the same period of 2008, the ministry said.

Related readings:  China attracts $853b FDI in three decades  On China's rapid growth in outward FDI  First hike in FDI in 11 months  FDI rises 7% in August  Confidence set to keep FDI flowing

There was a nearly 11 percent increase in the number of newly approved foreign invested companies in September, suggesting that China's economic recovery is attracting investment after a lull earlier in the year.

The September rise in foreign direct investment compared with a 7 percent year-on-year increase in August, and declines of 35.7 percent in July and 6.8 percent in June.

The figure does not include stocks and other financial assets.

China's economic growth rose to 7.9 percent over a year earlier in the quarter ending June 30, up from 6.1 percent the previous quarter, and analysts say the recovery is gathering strength. Retail spending and industrial investment are rising.

China is a top investment destination but double-digit growth rates plunged in late 2007 as foreign companies were hit by the global downturn and cut spending. Many are continuing to invest in China to take advantage of its stronger economic growth compared with other countries.