April sees Shanghai FDI surging 14.9 pct

Foreign direct investment in Shanghai expanded 14.9 percent from a year earlier to US$1.6 billion in April, a four-month high in terms of value thanks to a surge of foreign investment in the city's manufacturing sector, the Shanghai Statistics Bureau said Wednesday.

The pace picked up from a 10.4 percent increase in March with 259 foreign-invested projects signed last month.

Contracted investment in the city's manufacturing sector, nearly one-fifth in total value, surged 29.9 percent year on year last month. Investment in the service sector contracted 16.6 percent, but still making up four-fifths in total value.

Chen Xianjin, deputy director of the Shanghai Commission of Commerce, said earlier that Shanghai remains a magnet for foreign investment despite higher costs because the city has developed a mature system that foreign investors can trust.

Jeffrey Wang, vice president of the Shanghai Foreign Investment Development Board, said Shanghai's stable economic growth, its friendly attitude towards foreign investment and well-regulated business environment have made it a favorable destination for foreign capital.

Shanghai's economy expanded 7.8 percent on an annual basis in the first quarter, up from a pace of 7.5 percent in 2012. With only 0.06 percent of China's land, 1.8 percent of its population and 1.7 percent of its investment, Shanghai contributed more than 4 percent of the nation's GDP.