Foreign Investment Reaches Record Level in China

Direct investment from foreign buyers in China soared to its highest level ever last year, new figures have officially revealed. The news highlights the growing confidence and sentiment held in the country's economy, despite the government implementing a number of cooling measures last year....

Direct investment from foreign buyers in China soared to its highest level ever last year, new figures have officially revealed. The news highlights the growing confidence and sentiment held in the country's economy, despite the government implementing a number of cooling measures last year.

Foreign investment in China rose to a record USD 105.7 billion in 2010, with over a fifth of this money flowing into the property sector, government ministers have revealed.

"The strong full-year FDI figures show that the world is still largely sold on the China growth story, viewing China as a high-growth, high-returns location," said Alistair Thornton, an analyst at IHS Global Insight. "Tepid growth prospects in the eurozone and US have only served to heighten this."

However, in Beijing concern surrounding ever-increasing food and property prices has led to officials trying to reduce the volume of money flowing into the economy as inflation continues to soar.

And the high level of foreign money being poured into the real estate market in the region is expected to be viewed as a "concern" for Beijing, Mr Thornton added.

- Wednesday 19 January 2011

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