Foreign direct investment in the mainland surged almost by a third last month from a year ago as fast growth and prospects of further appreciation in the yuan boosted confidence.
The Ministry of Commerce yesterday said actual foreign investment - rather than investments agreed by contracts to be made in the future - increased 32.9 per cent year on year to US$12.52 billion in March. For the first quarter, investment was up 29.4 per cent to US$30.34 billion.
'An increasing portion of foreign direct investment is flowing into services industries, with a concentration in real estate, logistics and computer applications,' said Yao Jian, the ministry's spokesman.
Foreign investment in the services sector soared 36.4 per cent in the first three months to account for 47.4 per cent of total foreign investment in the quarter, while investment attracted by the manufacturing industry grew 23.6 per cent, according to the ministry.
US-based retailer Starbucks, for one, has revealed plans to have 1,500 stores on the mainland by 2015, nearly four times the current level, pinning hopes on robust consumption in coming years.
The mainland economy expanded 9.7 per cent in the first quarter despite measures to cool inflation, which increased 5.4 per cent year on year in March to a 32-month high.