Foreign investment in China slumps in July

Foreign direct investment (FDI) into China dropped by more than a sixth year-on-year to a two-year low in July, the government said Monday, but denied any link to Beijing's multiple probes into foreign companies. FDI -- which excludes investment in financial sectors -- fell 16.95 per cent in the month to $7.81 billion, the commerce ministry said, its lowest since July 2012, when it was $7.579 billion. The fall saw FDI in the first seven months decline 0.35 per cent to $71.14 billion, eliminating a small increase at the half-year stage. In the first seven months of the year, investment from Japan crashed 45.4 per cent to $2.83 billion, with that from the EU slumping 17.5 per cent to $3.83 billion and from the US down a similar 17.4 per cent to $1.81 billion. But investment from South Korea -- which has been enjoying closer diplomatic ties with China -- rose 34.6 per cent to $2.92 billion, and from Britain, the home of troubled pharmaceutical giant GSK, soared 61.2 per cent to $730 million. For the current year as a whole, Shen said FDI is still expected to grow at a similar pace to 2013, when it rose 5.3 per cent year-on-year in 2013 to $117.6 billion. China's own overseas investment in non-financial sectors soared 84.9 per cent year-on-year in July, to $9.21 billion, the ministry said, according to AFP.