Rising FDI Reflects Inflow Of Hot Money

From China Daily:

Foreign direct investment (FDI) in China rose 45.5 percent in the first half of the year, deepening worries that the inflow of “hot money” could lead to higher inflation.

The Ministry of Commerce said on Friday that foreign investors spent $52 billion in China between January and June. In the same period last year, FDI increased only 12 percent.

The ministry did not provide figures for June, but based on data published for the first five months, the June figure is estimated at $9.6 billion, up from $6.6 billion a year ago.

Gene Ma, macroeconomic analyst at Beijing-based economic research firm China Economic Business Monitor, said: “The inflow increase is fast, but we don’t know where the money has gone.”

Read also FDI in China up 45.6% in Jan-June period by Xinhua.

July 11, 2008 7:38 PM
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