China Business Blog - Aggregated China Business Blogs
Aggregated China Business Blogs
Foreign investors sending more money to Shanghai
Aggregated Source: Shanghai Daily: Business

FOREIGN direct investment in Shanghai grew 14.9 percent from a year earlier to US$1.6 billion in April, a four-month high in terms of value due to the rapid growth of investment in the city's manufacturing sector, the Shanghai Statistics Bureau said yesterday.

The pace picked up from the increase of 10.4 percent in March with a total of 259 foreign-invested projects signed last month.

Contracted investment in the city's manufacturing sector, which accounted for almost 20 percent of the total value, surged 29.9 percent year on year last month. Investment in the service sector contracted 16.6 percent, but was still around 80 percent of the total.

Chen Xianjin, deputy director at the Shanghai Commission of Commerce, said earlier that Shanghai remained a magnet for foreign investment because it had developed a mature system foreign investors could trust.

Jeffrey Wang, vice president of the Shanghai Foreign Investment Development Board, said the city's stable economic growth, its friendly attitude toward foreign investment and a well-regulated business environment made it a favorable destination for foreign capital.

Shanghai's economy expanded 7.8 percent on an annual basis in the first quarter, up from the increase of 7.5 percent in 2012.

With only 0.06 percent of China's land, 1.8 percent of its population and 1.7 percent of its investment, Shanghai produced more than 4 percent of the nation's overall economic output.

Last month, French President Francois Hollande made Shanghai the final stop in his first state visit to China, and proposed closer business relationship between Shanghai and cities in France.

A string of politicians have come to boost trade and investment exchanges in recent months, including governors of two American states (California and Wisconsin) who visited Shanghai and announced the establishment of representative offices in the city.

Shanghai also hosted the first China (Shanghai) International Technology Fair last month to promote trade in technology, but it was also a means to bolster foreign investment, especially in the manufacturing sector.

Foreign direct investment in China rose for the third consecutive month in April with European countries and the United States increasing their investment in China.

But some analysts said that the investment outlook remained uncertain as growth momentum had eased for a second month.

Original URL: Click here to visit original article
Copyright Shanghai Daily: Business