China’s May foreign direct investment up 13.4%

Thursday, 16 June 2011 00:09 - - {{hitsCtrl.values.hits}}

BEIJING, (AFP): China attracted $9.23 billion in foreign direct investment in May, up 13.43 percent year-on-year, and higher than the previous month, the commerce ministry said Wednesday.

Foreign direct investment in factories and other projects in the world’s second largest economy last month was up from $8.46 billion in April, when it rose 15.2 percent from the previous year.

Commerce ministry spokesman Yao Jian announced the figures at a regular briefing in the Chinese capital a day after government data showed inflation hit a near three year high in May.

Analysts say robust growth in China and expectations for a stronger currency have attracted a growing number of overseas investors hoping for a better return on their money as the United States and Europe remain in the doldrums.

But growing concerns that the flood of credit is helping to fuel inflation have triggered a round of monetary tightening as Beijing tries to rein in soaring consumer costs.

In the first five months of the year, foreign direct investment rose 23.4 percent on year to $48.03 billion.