Foreign Investment Up in China

Filed in archive Stocks on July 17, 2007

If you had any doubt about whether foreign investment in China was on the increase, I can set your mind at ease: Foreign investment in China was up at the end of May by 9.9% over the same period last. By the end of June that percentage had grown, with foreign investment in the Chinese economy being up by 12.2% compared with the first half of 2006. The Associated Press reported that when the month of June along is compared with figures from the same period last year, foreign investment was up 22% in China.

That's an extra $31.9 billion this year invested into China from overseas according to the Ministry of Commerce.

While the low cost of manufacturing goods and the availability of inexpensive labor probably both play the huge roles in drawing investment to China, the recent glut of initial public offerings doesn't hurt the formula. This is especially true when Chinese companies go public on foreign markets.

June saw a number of IPOs from China, like solar power firms LDK and Yingli Green. June also saw a number of foreign firms become more involved in digital media in China - including Disney, Electronic Arts, and the Swedish firm, Entropia.