China FDI inflows up 0.7% in June

BEIJING - Foreign direct investment (FDI) into the Chinese mainland rose 0.7 percent year on year in June, the Ministry of Commerce said Tuesday.

The growth slowed sharply from a 7.8-percent rise in May. In the first half of the year, FDI, which excludes investment in the financial sector, stood at $68.41 billion, up 8.3 percent from the same period last year, the ministry said.

Investment in the country's burgeoning service industry continued robust growth, accounting for 63.5 percent of total investment flows during the January-June period.

FDI in the manufacturing sector dropped 8.4 percent to $20.86 billion, accounting for 30.5 percent of the total.

MOC spokesman Shen Danyang attributed the fast investment growth in services to China's massive market opportunities, government support to the industry, as well as increased opening-up in the sector.

Investments from Macao and France saw fast growth, up 56.2 percent and 46.9 percent respectively. In contrast, investment from Japan plunged 16.3 percent, and that from the US fell 37.6 percent.

Foreign mergers and acquisitions in China increased sharply, with their share of total FDI surging from 4.8 percent last year to 19.3 percent.

Tuesday's data also showed China's outbound direct investment by non-financial firms jumped 29.2 percent to $56 billion in the first half of the year.

The FDI data came as growth in the world's second largest economy showed signs of bottoming out on the back of a slew of government support policies.

Growth in the second quarter came in at 7 percent, unchanged from the first quarter and in line with the government target of around 7 percent.