Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1997)	12/15/2003 1:19:58 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China FDI falters but retail sales robust By Scott Hillis BEIJING (Reuters) - Foreign investment in China plunged in November from a year earlier, but pledges of future funds ballooned as investors still piled into the world's fastest growing major economy. Retail sales also showed healthy annual growth in November, giving hope that consumers could begin to drive economic growth next year as domestic investment trickles off. China drew $3.6 billion in foreign direct investment, or FDI, in November, down 39 percent from a year earlier, the Commerce Ministry said on Monday. But contracted foreign investment, an indicator of future trends, was $11.8 billion, a rise of 68.6 percent from a year earlier. "I'm not particularly concerned given that we'll still see FDI around $50 billion this year," said Tai Hui, an economist at Standard Chartered in Hong Kong. "Keep in mind that FDI tends to be more volatile than other indicators because it often comes in chunks or blocks." FDI flows into China often see sharp swings from month to month, a phenomenon illustrated this year by June's eye-popping $7 billion figure that was followed by just $3.1 billion in July. With cheap labour and a vast potential market, China overtook the United States last year as the world's top target of foreign investment, pulling in nearly $53 billion. CONSUMER POWER In one of November's biggest deals, the world's fifth-largest retailer, Germany's Metro AG, said it will invest 600 million euros ($700 million) to open 40 new stores across China over the next five years. Metro hopes to tap growing consumer power that appears set to break out of recent relative weakness and become a major driver of overall growth in the years ahead. Retail sales rose 9.7 percent in November from a year earlier as consumers rang up furniture, cars and mobile phones, the State Statistical Bureau said on Monday. November's growth eased from October's annual 10.2 percent, which was the fastest pace in two years. reuters.com