China October FDI up 7.9%

Foreign direct investment (FDI) in China rose 7.9% to US$7.66 billion in October from a year earlier, a sign of renewed confidence in the mainland’s economic growth story, the South China Morning Post reported. October’s pace of investment was higher than September’s 6.1% increase and brings the total amount of foreign investment for the first 10 months to US$82 billion, 15.7% higher than for the same period last year. Beijing has become more wary about the effects of hot money inflows and said that it may issue new measures to stem the rising tide of offshore capital coming in. The central bank last week increased domestic banks’ reserve requirements in an effort to mop up liquidity as October inflation hit a 25-month high.