Shanghai attracting more foreign investment in January
February 26, 2019 Category China News Round-up, Weekly
Shanghai posted rapid growth in attracting foreign funds in January, with the number of new foreign-funded projects jumping 69.1% year-on-year to 563 in the month. Total contracted foreign investment in Shanghai surged 197.6% to USD10.97 billion, and the actual use of foreign capital rose 33.5% to USD1.422 billion, according to the Shanghai Commission of Commerce.The robust development of foreign investment in January was boosted by the rapid growth in the foreign-funded services industry. In January, the services sector saw 552 foreign-funded projects newly launched in the city, posting actual foreign investment of USD1.284 billion, an increase of 24.8% over the same period last year. The sector accounted for 90.3% of the overall foreign investment, becoming the main force for growth.
The commercial services industry received USD645 million of foreign investment, an increase of 66.5% from a year earlier, accounting for 45.4% of the market, while the science and technology services industry attracted USD146 million, up 263.8% to account for 10.3%. The real estate sector and trade were also among the major areas of investment. The manufacturing sector also saw actual foreign investment surge 315.7% to USD126 million, accounting for 8.8% of the total. The manufacturing sector saw two mega projects: Sisal Chemical received USD58.37 million, and newly set-up BHSENS posted an actual use of USD16.91 million.
Meanwhile, Shanghai witnessed the establishment of four new regional headquarters by multinational corporations, two new foreign investment companies and two more foreign-funded research and development (R&D) centers. By the end of January, a total of 674 regional headquarters of multinational corporations had been set up in Shanghai, among which there were 90 Asia-Pacific headquarters.
Shanghai’s efforts in optimizing the business environment and enhancing the efficiency of government services were the major driving forces for the surge of foreign investment in January, the Commission said. In 2018, the city launched a total of 5,567 foreign-funded projects, 41.7% up from the previous year, with the support of preferential policies, including the city’s “100 measures” aimed at promoting opening-up and attracting new foreign investment, the Shanghai Daily reports.
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