China foreign direct investment surges to two-year high

[Chinese-Dragon]

Credit to the member @cirr for finding this story.

China foreign direct investment surges to two-year high

June inflow is the highest monthly total since 1997 with the economy on track to meet target

Thursday, 18 July, 2013

Nick Edwards

Foreign direct investment into the mainland saw its strongest surge in more than two years last month with the US$14.4 billion of capital committed leaving the world's second biggest economy firmly on track to meet the government's target of US$120 billion of inflows this year.

Data published by the Ministry of Commerce yesterday showed first-half non-financial FDI had reached a total of US$61.98 billion.

China foreign direct investment surges to two-year high | South China Morning Post

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Highest monthly total since 1997, that is great news.

 

[Chinese-Dragon]

Hong Kong Stocks Rise on China FDI, Bernanke; AAC Plunges - Bloomberg

FDI in China surges despite economic slowdown - The Times of India

Funny how the Indian media puts a negative spin on the article headline.

 

[Middle Kingdom]

Indians have nothing but jealousy for our success. I can't blame them.

 

[Chinese-Dragon]

Not that we require FDI inflows to finance our trade deficit.

Since of course, we don't have a trade deficit.

And FDI makes up a very miniscule percentage of overall investment in China. The vast majority of investment in China is domestic investment, and it amounts to trillions every year.

Surging FDI to me is more of a confidence indicator rather than anything especially useful.

 

[Chinese-Dragon]

China June FDI rises at fastest pace in more than two years - Reuters

(Reuters) - Foreign direct investment in China in June jumped 20.12 percent from a year ago, the Commerce Ministry said, the quickest gain since March 2011, showing that investors are still confident about the world's second-largest economy even as growth slows.

China drew $14.4 billion in foreign direct investment in June, the ministry said on Wednesday, while in the first half, FDI totaled $62.0 billion, up 4.9 percent from the same period of 2012.

FDI is an important gauge of the health of the external economy, to which China's vast factory sector is oriented, but it is a small contributor to overall capital flows compared with exports, which were worth about $2 trillion in 2012.

"The June FDI data shows overseas investors are still optimistic on the outlook of China's economy in the medium and long term thanks to China's recent efforts to move the economy up the value chain and its strong domestic consumption," said Li Wei, China economist at Standard Charted Bank in Shanghai.

I wonder why global investors are still so confident in China?

If you look at the threads started by Indians on this forum, apparently China's economy is about to collapse and everything is gloomy!

Ironically, investors are pulling out of India and causing the rupee to collapse. And the Indian government is desperately trying to open up FDI (even in sensitive sectors like communications) in order to stem the collapse of the rupee.

 

[Wright]

Indians have nothing but jealousy for our success. I can't blame them.

They are some of your biggest investors. Same with the Americans, Japanese, Koreans. All the nations you dont like.

 

[theniubt]

They are some of your biggest investors. Same with the Americans, Japanese, Koreans. All the nations you dont like.

The irony here is that the Chinese economy is on the "verge of collapse" according to India and the US.

 

[Chinese-Dragon]

They are some of your biggest investors. Same with the Americans, Japanese, Koreans. All the nations you dont like.

Investment has nothing to do with liking or not liking someone.

Investment is about one thing - ROI (Return on Investment).

They invest in us because they have more confidence that we can provide the growth needed for acceptable returns, compared to their own country.

Bottom line: They just want profit for themselves. Nothing to do with nations, and everything to do with their own pocket.

 

[Chinese-Dragon]

The irony here is that the Chinese economy is on the "verge of collapse" according to India and the US.

Yet the international credit ratings agencies are downgrading India, not China.

Yet the global investors are pouring FDI into China, while they are abandoning India and causing the rupee to collapse.

From reading this forum, you would have thought it was the other way around! Since they are always posting threads on how China's economy is going to collapse... too bad the international investors have chosen to put their money in China, not India.

The irony, is that India desperately needs FDI to finance their massive trade deficit, while we don't need it at all since we run a giant trade SURPLUS.

PM backs opening up FDI to boost rupee - The Times of India

 

[Chinese-Dragon]

China's FDI surges in June - Xinhua | English.news.cn

And a chart of the Chinese Yuan vs the US dollar over the entire past decade:

The demand for our currency keeps rising and rising.

Not like the worthless Rupee, that even the Indians don't want. They prefer Gold instead.
@bandit.

 

[bandit]

What do you mention me for, join you in gloating?

By the way, I feel like I am running an education camp here for Chinese middle aged men.

Here read this -

The value of the Chinese currency is limited by the government and is only allowed to rise or fall within a narrow range


China to Free Yuan in 5 Years, Says Hong Kong Exchanges

CCP wants Chinese like you to feel happy over exchange rates, boom we will appreciate it a bit more, fools will take it as signs of improving economy.

 

[Chinese-Dragon]

What do you mention me for, join you in gloating?

By the way, I feel like I am running an education camp here for Chinese middle aged men.

Here read this -


CCP wants Chinese like you to feel happy over exchange rates, boom we will appreciate it a bit more, fools will take it as signs of improving economy.

The global investors have chosen already.

Like you said, people care about their money. That's why they put their money in China instead of India.

And that's why the Rupee is dropping like a brick, even the Indians don't trust it.

 

[bandit]

The global investors have chosen already.

Like you said, people care about their money. That's why they put their money in China instead of India.

And that's why the Rupee is dropping like a brick, even the Indians don't trust it.

So we accept that all that hoopla created by you Yuan appreciating was a bunch of lies.

I hope I managed to cure some ignorance today.

 

[Chinese-Dragon]

So we accept that all that hoopla created by you Yuan appreciating was a bunch of lies.

I hope I managed to cure some ignorance today.

Look at any currency chart. The Chinese Yuan has been increasing in value constantly over the past decade.

While FDI in China is surging to record levels.

India on the other hand is experiencing a currency collapse, since nobody actually wants the Rupee. Even the Indian government had to ask people to stop buying Gold.

Which was obviously going to happen considering that India has the highest trade deficit and fiscal deficit in all the BRIC countries, as well as growth slowing down to 4.5%.

India GDP grows at decade low of 4.5% - Economic Times

IMF forecasts 4.5% growth for India; to lose second fastest-growing economy tag - Economic Times

 

[walle]

So we accept that all that hoopla created by you Yuan appreciating was a bunch of lies.

I hope I managed to cure some ignorance today.

The only ignorant person here is obviously you, it would take you 30s on the search engine to find out how wrong you are. Then again the Indian flag on PDF has always been synonyms with Ignorance and delusions of grandeur.