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July 19, 2012

FDI in China off 6.9 percent in June

BEIJING (UPI) -- Foreign direct investments into China in June plunged 6.9 percent year-on-year, the Commerce Ministry said, blaming the lackluster global economy.

June FDI totaled $12 billion, ministry spokesman Shen Danyang said. Declining investment in China's property sector also was blamed, China's Global Times reported.

FDI in the first six months of 2012 totaled $59.1 billion, down 3 percent from the same period of last year.

The newspaper quoted the U.N. Conference on Trade and Development as saying global FDI is expected to increase at a slower rate to $1.6 trillion this year due to slow global economic growth.

China's GDP growth in the second quarter fell to 7.6 percent year-on-year, the sixth consecutive quarter of a slowdown and the slowest pace in more than three years.

"China's economy will hopefully pick up in the second half of the year, which will boost investor confidence," Shen said.

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