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SCMP Reporter

Foreign direct investment on the mainland rose at a robust  15 per cent year on year in the first seven months.

The rise came as Beijing imposed macroeconomic controls to steer the economy to a soft landing by the end of the year.

Actual foreign direct investment (FDI) increased to US$38.4 billion in the first seven months, after a  rise of 12 per cent in the first six months from the same period last year,  Ministry of Commerce figures showed.

Contracted  foreign investment, an indicator of future trends, rose by 39.7 per cent to US$82.7 billion in the same period, down from 42.7 per cent in the first six months.

On a monthly basis, FDI in July stood at US$4.5 billion, down from a record $7.97 billion in June.

China last year surpassed the United States to become the world's biggest recipient of foreign investment, attracting a record  US$53 billion.

The flow of overseas capital has not slowed this year, even though Beijing has  tried to curb investment in some overheating sectors amid fears that the economy might go from boom to bust.

FDI growth has remained strong after a single-digit  rate of 7.5 per cent recorded in March, when the central government intensified efforts to rein in runaway investment in some sectors.  It bounced back to 10.07 per cent in April, reached 11.34 per cent in May and 12 per cent in June.

'Basically, the message is that foreign investors have not been distracted by the government's tightening measures,' said an official from the department of foreign investment administration at the Ministry of Commerce.

'They seem to be pretty confident that the government can steer the economy to a soft landing by December,' he said.

A huge pool of cheap labour and budding domestic markets would continue to make China appealing to foreign investors, he said.

Vice-Commerce Minister Ma Xiuhong   said last month that the macro-control measures would not  adversely affect foreign investment. Sustainable growth of the economy would help drive up foreign investment and help attract high-quality investment, she said.



FDI shows 15pc growth despite measures to stop overheating