“China’s foreign direct investment rose for the first time in nine months in February, a sign confidence in the world’s second-biggest economy is improving amid optimism growth will keep rebounding.
Inbound investment gained 6.3 percent from a year earlier to $8.21 billion, the Ministry of Commerce said in a statement today in Beijing. Non-financial outbound investment in the first two months of the year surged 147 percent to $18.4 billion, exceeding inbound spending of $17.5 billion.
Newly appointed Premier Li Keqiang’s pledge to spread the wealth from the nation’s economic expansion and increase the number of middle-income citizens may support government efforts to rely more on domestic demand for expansion. Li vowed to open the economy to more market forces and strip power from the government to achieve 7.5 percent annual growth through 2020.
“China’s attractiveness remain for foreign investors, from its relatively-developed infrastructure to stable macroeconomic growth,” said Sun Junwei, a Beijing-based economist with HSBC Holdings Plc. “As the global economy recovers, China may continue to see a steady inflow of investments this year, helping the overall China recovery story.”
The benchmark Shanghai Composite Index (SHCOMP) rose 0.1 percent as of 11:04 a.m. local time. China’s money-market rate dropped to the lowest level in more than a week on speculation increased investment from abroad will boost cash in the financial system.
Global Economy
Data today on investor sentiment in Germany, industrial production in Italy and U.S. housing starts will be among the latest readings on the strength of the global economy as European officials seek to contain a financial crisis in Cyprus….”
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