Foreign investment in the three central provinces of Jiangxi, Anhui and Hunan plunged more than 30 per cent in the first five months due to the Asian financial crisis, the Guangdong International Trust & Investment Corp (Gitic) bankruptcy and lack of attractive projects.
Overall, contracted foreign investment in the period fell 17 per cent to US$14.53 billion from the same five months last year and actual foreign investment fell 6.6 per cent to $13.9 billion.
In Hunan, the fall in actual investment was 33.3 per cent, to $186.26 million, and in Anhui and Jiangxi the fall was more than 50 per cent, the China Economic Times reported.
In Hunan, investment from Southeast Asia fell 69 per cent to $3.09 million, from Europe 63 per cent to $21.09 million and from North America and Australia 57 per cent to $15.1 million.
The investment fall in Hunan began last year and by May this year reached 59.7 per cent, to $32.2 million, with infrastructure and real estate the hardest hit.
It cited several reasons for the decline, including a negative international environment due to the war in Kosovo.
Another was the Gitic bankruptcy which has shaken foreign investors' confidence and the slowdown in the economy, both in the mainland and abroad, that had made investors unwilling to put money into large industrial, agricultural or high-technology projects.
