Investors buoyed by higher August FDI figures

Is China’s economy well on the way to recovery? The August data released last week was certainly positive, and now we have some more good numbers to consider: Foreign direct investment was up 7% in August, the first rise in almost a year. Of course, the January-August figures were still down, by 18%, but it was encouraging to see foreign investors no longer fleeing for the hills. As government spending is increasingly supported by private sector capital inflows, the idea is that private sector demand will help to reinforce growth. Of course, no release of positive figures this year would be complete without a government official warning that everything could end horribly; yesterday, it was the turn of a Ministry of Commerce spokesman. But that wasn’t enough to worry investors. Both the Shanghai and Shenzhen indexes rose yesterday, helped along by metals firms. With all its casinos, Macau doesn’t need a stock market, but those, too are on the rise after a grim first half. Visa restrictions, introduced to keep mainland officials from gambling away public funds, hurt casino profits (the poor dears). Casino operator SJM Holdings led the way, posting 40.8% lower first-half profits than in the same period a year ago.