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SHANGHAI saw foreign direct investment grow last month because foreign investors were still attracted to the city’s economy and its pro-business environment.
A total of US$1.5 billion in contracted foreign investment landed in the city in January, an annual jump of 12.5 percent, according to the Shanghai Statistics Bureau.
But it was slower than last year’s average of 31.3 percent while China posted a negative 0.3 percent rate in January.
Speaking to consul generals, foreign commerce chamber officials and leaders of multinational companies at a conference earlier this month, Chen Xianjin, vice chariman of the Shanghai Commission of Commerce, said that “foreign investors still consider Shanghai a safe bet for their capital, thanks to the city’s stable economic performance and its investor-friendly environment” amid a grim economic outlook globally.
Over 86 percent of the total FDI in January, or US$1.3 billion, were invested in the city’s service sector, the bureau said.
Li Maoyu, an analyst at Changjiang Securities Co, said: “Shanghai has been accelerating its economic restructuring. The foreign funds will continue to play an important role in promoting Shanghai’s services as a pillar industry.”
The FDI pumped into manufacturing fell 19.5 percent annually to US$171 million, or 11 percent of the total value.
Meanwhile, FDI in China in January dipped 0.3 percent from a year earlier to US$9.99 billion, the third straight month of decline, due to a 42.5 percent plunge in investment from the debt crisis-hit European Union.
Source: Shanghai Daily
