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China foreign direct investment up 38 percent in November

16 December 2010 09:27 (UTC +04:00)

Baku - APA-Economics. Foreign direct investment in China leapt 38.17 percent in November, the government said Wednesday, despite efforts by authorities to cool the economy and stem liquidity flows, AFP reported.

Analysts said the spike in foreign investment may have been driven by excess global liquidity and expectations that the Chinese yuan currency will appreciate.

Announcing the year-on-year figure, commerce ministry spokesman Yao Jian told a regular briefing that China attracted 9.7 billion dollars in foreign direct investment (FDI) last month.

FDI slowed sharply in August, rising just 1.4 percent year-on-year compared with 29.2 percent in July and 39.6 percent in June.

But in September it picked up again, increasing 6.1 percent year-on-year, while in October it rose 7.9 percent.

Foreign companies poured 41.1 billion dollars into China’s services industry from January to November, up 29.3 percent from the same period last year, a ministry statement said.

Such strong growth has fanned concerns about speculative foreign cash inflows adding to inflationary pressures that have Beijing’s policymakers worried.