Shanghai investment surges ahead
Contracted foreign investment in Shanghai surged 35 per cent, to nearly US$8 billion, in the first eight months of this year, but the breakneck pace of investment growth in the first half of the year slackened slightly last month.
In August, foreign companies committed US$900 million, up 11.4 per cent from the same month a year ago, reports said.
But officials indicated the growth figure was slightly down on July's, without giving details for that month.
In the first six months of the year the city's contracted foreign investment rose 40 per cent, to US$6 billion.
Contracted investment is an indicator of the future trend. The reports gave no figures for actual foreign investment.
Cheered by changes after the mainland's entry to the World Trade Organisation nearly two years ago, foreign firms have rushed into Shanghai.
In the latest deal, the British corporate services group Hogg Robinson signed a letter of intent with hotel operator Jinjiang International Group to establish a joint venture with its Business Travel International unit to offer travel services. The foreign partner will hold a 51 per cent stake in the venture, taking advantage of recent reforms that allow majority foreign ownership.
Since Shanghai began loosening controls over its tightly guarded financial sector, 57 foreign-invested banks have set up operations in the city.
By the end of last month, Shanghai had attracted more than 30,000 foreign-invested companies and cumulative contracted foreign investment of US$71 billion.
