China's overseas investments more than double in first half

---

BEIJING, July 24 (AFP): China's overseas investment more than doubled in the first half of 2008, the government said today, as the energy- hungry nation sought to secure resources globally to fuel its economic boom.

Non-financial direct outward investment hit 25.7 billion dollars in the first six months of the year, 2.3 times the level recorded in the same period last year, Assistant Minister of Commerce Wang Chao told reporters.

The figure stood at 18.7 billion dollars for the full year of 2007, government data showed.

Non-financial investment refers to investment made by companies other than banks, insurers and securities firms.

"The Chinese government takes great efforts to guide and encourage companies to 'go out'," Wang said. "China's outward investment will enter into a new phase of fast development."

With forex reserves of 1.8 trillion dollars and growing, the Asian giant is keenly looking abroad to acquire resources to fuel an economy that has maintained double-digit growth in five consecutive years.

In February, the state-controlled aluminium company Chinalco, combined with US-based Alcoa, bought a nine per cent stake in Australia's Rio Tinto for 14 billion dollars. Chinalco's contribution was the largest overseas investment ever made by a Chinese firm.

But growing financial turmoil at home and abroad also triggered official concerns of growing risks to Chinese investors, with Beijing Tuesday warning state-owned companies to exercise extreme care when investing.

The government announced earlier this month that foreign direct investment into China grew by 45.6 per cent in the first half to 52.4 billion dollars.