Analysts partly blame rising costs for modest 4pc rise
Growth in Shanghai's foreign investment slowed sharply last year but stayed in positive territory despite a national fall, the Shanghai Foreign Economic Relations and Trade Commission said.
Actual foreign direct investment rose 4.72 per cent to US$6.8 billion, the commission said. In 2004 it rose 11.8 per cent to US$6.54 billion.
The mainland attracted US$60.33 billion in foreign investment last year, short of the record US$60.63 billion in 2004, according to the Ministry of Commerce.
Analysts said rising costs in Shanghai and the city's shift away from manufacturing caused the slowdown.
'The current slowdown doesn't mark a turning point because the whole economy is still growing well and efforts will ultimately improve the investment environment,' said Sun Lijian, an economics professor at Shanghai's Fudan University.
Shanghai's contracted foreign investment - an indicator of future commitments - surged 18.32 per cent to US$13.83 billion last year. In 2004 contracted investment rose 12.6 per cent to US$11.69 billion, official figures showed.