China’s FDI inflow edges up 0.4% in April

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20attracted%208.44%20billion%20U.S.%20dollars%20of%20foreign%20direct%20investment%20%28FDI%29%20in%20April%2C%20up%20only%200.4%20percent%20year%20on%20year%2C%20the%20Ministry%20of%20Commerce%20%28MOC%29%20said%20Thursday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20figure%20marked%20a%20sharp%20slowdown%20from%20the%206.32-percent%20growth%20seen%20in%20February%20and%205.65%20percent%20in%20March.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20the%20first%20four%20months%20of%202013%2C%20FDI%20inflow%20to%20China%2C%20which%20excludes%20those%20to%20the%20financial%20sector%2C%20grew%201.21%20percent%20year%20on%20year%20to%2038.34%20billion%20U.S.%20dollars%2C%20MOC%20spokesman%20Shen%20Danyang%20said%20at%20a%20press%20conference.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22We%20expect%20FDI%20to%20grow%20steadily%20this%20year%2C%22%20said%20Shen.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EDuring%20the%20January-April%20period%2C%20China%20approved%20the%20establishment%20of%206%2C687%20foreign-invested%20enterprises%2C%20down%204.69%20percent%20from%20a%20year%20earlier.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20service%20sector%20saw%20a%20steady%20increase%20of%20FDI%20inflows%20in%20the%20first%20four%20months%2C%20up%206.87%20percent%20year%20on%20year%20and%20accounting%20for%2049.36%20percent%20of%20the%20total%20FDI%20inflow%20during%20the%20period.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EForeign%20investment%20into%20China%27s%20manufacturing%20sector%20went%20down%203.83%20percent%2C%20taking%20a%2042.7%20percent%20share%20in%20the%20FDI%20inflow%2C%20Shen%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELu%20Jinyong%2C%20an%20economic%20and%20trade%20professor%20with%20Beijing%27s%20University%20of%20International%20Business%20and%20Economics%2C%20said%20as%20China%20moves%20up%20the%20value%20chain%20and%20focuses%20on%20brand%20building%2C%20the%20investment%20structure%20will%20become%20more%20optimized.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20breakdown%2C%20direct%20investment%20from%20the%20European%20Union%20and%20the%20United%20States%20jumped%2029.68%20percent%20and%2033.2%20percent%2C%20respectively%2C%20to%202.47%20billion%20U.S.%20dollars%20and%201.4%20billion%20U.S.%20dollars%20in%20the%20first%20four%20months.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ERegionally%2C%20China%27s%20western%20areas%20saw%20strong%20growth%20in%20foreign%20investment%2C%20with%20an%20increase%20of%2025.7%20percent%2C%20compared%20with%20a%205.7-percent%20gain%20for%20the%20central%20regions%20and%201.1-percent%20drop%20for%20the%20east.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMeanwhile%2C%20Chinese%20investment%20in%20overseas%20non-financial%20sectors%20rose%2027%20percent%20year%20on%20year%20to%2029.5%20billion%20U.S.%20dollars%20in%20the%20first%20four%20months.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAnalysts%20warned%20of%20the%20risk%20of%20hot%20money%20inflow%20disguised%20as%20FDI%20to%20cash%20in%20on%20a%20rising%20yuan%20and%20interest%20rate%20margins.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EQu%20Yankai%2C%20executive%20director%20of%20the%20China%20Association%20of%20Enterprises%20with%20Foreign%20Investment%2C%20said%20it%20is%20difficult%20to%20accurately%20measure%20the%20amount%20of%20such%20speculative%20funds%20but%20that%20the%20risks%20are%20real.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESpeculators%20might%20use%20bogus%20investments%20and%20fake%20transactions%20to%20bring%20in%20hot%20money%2C%20analysts%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EUnder%20a%20guideline%20put%20into%20effect%20by%20the%20State%20Administration%20of%20Foreign%20Exchange%20%28SAFE%29%20on%20Tuesday%2C%20management%20over%20the%20payment%20of%20capital%20with%20foreign%20exchange%20by%20foreign%20investors%20will%20be%20simplified.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMeanwhile%2C%20the%20compliance%20of%20foreign%20direct%20investment%20in%20China%20will%20be%20tightly%20examined%20and%20verified%20to%20ferret%20out%20anything%20abnormal%20or%20suspicious.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EBy%20launching%20an%20information%20system%20for%20capital%20accounts%20on%20Tuesday%2C%20the%20SAFE%20is%20expected%20to%20tighten%20its%20monitoring%20over%20the%20movement%20of%20direct%20investment.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELu%20said%20that%20the%20country%27s%20combat%20against%20hot%20money%20had%20lasted%20for%20many%20years.%20%22Whenever%20there%20is%20a%20market%20expectation%20of%20a%20rising%20yuan%2C%20the%20regulators%20will%20be%20alert%2C%22%20he%20said.%3C/FONT%3E%3C/P%3E%3CFONT%20face%3DVerdana%3E%0D%0A%3CP%3E%3CBR%3E%28Xinhua%20net%29%3C/P%3E%0D%0A%3CP%3E%26nbsp%3B%3C/P%3E%0D%0A%3CP%3E%26nbsp%3B%3C/P%3E%0D%0A%3CP%3E%26nbsp%3B%3C/P%3E%0D%0A%3CP%3E%26nbsp%3B%3C/P%3E%0D%0A%3CP%3E%3CBR%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E