FDI up 5.7% in October, third consecutive rise

Foreign direct investment (FDI) in China rose 5.7% year-on-year in October to US$7.1 billion, the South China Morning Post reported. It was the third consecutive month of increases, but significantly slower than the 18.9% year-on-year growth posted in September. For the first 10 months of the year, FDI fell 12.6%. The year-on-year increase in October is seen as a further sign of economic recovery, and is attributed to expectations that China's economy will outperform the global economy in the near to medium term. Some observers note, however, that the rising investment could also signal a renewed risk of speculative inflows as foreign investors bet on the appreciation of the renminbi.