China Just Posted a Record Surge in Inward Foreign Investment

(Bloomberg) -- A slew of new businesses setting up shop in China drove a 91 percent jump in foreign direct investment last month, the biggest increase in data going back two years.

Some 4,641 new foreign companies set up in the world’s second-largest economy in November, up 162 percent from the same period a year ago, Ministry of Commerce spokesman Gao Feng told reporters Thursday when unveiling the numbers. That helped fuel the increase in FDI, Gao said.

Also contributing to the climb were new policies aimed at luring international cash, Gao said.

China has made cautious moves to open up to foreign investors this year, shortening the list of assets they’re barred from acquiring in June. In an historic move last month, Beijing said it will lift foreign ownership limits on banks and allow non-Chinese firms to take majority stakes in local securities ventures.

The ministry also cited a number of big projects securing capital as contributing to the climb. Flattering the percentage gain, the November comparison benefited from a low base -- FDI rose 0.9 percent last November.

To contact Bloomberg News staff for this story: Miao Han in Beijing at mhan22@bloomberg.net.

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Emma O'Brien, Christopher Anstey

©2017 Bloomberg L.P.

With assistance from Miao Han