(Hong Kong, China) – New numbers out today show April foreign direct investment in China jumped 15.2% year-on-year. While this number might seem acceptable, various industry analysts had forecast the actual number to be more than double that – some expecting as high as about 36% year-on-year growth.
On a month-to-month basis, China FDI actually fell. Beijing reported a March FDI of just over $12.5 billion. April’s number came in at just under $8.5 billion.
China’s Ministry of Commerce did not elaborate on reasons for the decline.
I spoke with Frederic Neumann, Managing Director and Co-Head of Asian Economic Research at HSBC here in Hong Kong. He told me via e-mail that the lower number is likely just a blip on the radar.
Generally he says, “the (FDI) figures are quite volatile and it's not clear how useful they are. I'd be surprised if there will be much comment at all from various analysts…my own take is that this is more noise.”
Meanwhile, China’s official Xinhua news agency has been highlighting a different time frame, comparing the first four months of this year to the same time range last year. That gives a higher FDI growth number of 26.03% between the January to April period.
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