Wednesday, December 26, 2007

Learn Chinese - City sees fast growth in foreign investment

BIZCHINA / Overseas Investment

City sees fast growth in foreign investment
By Bian Ji (China Daily)
Updated: 2006-08-31 17:59

Foreign investment in Harbin, capital of Northeast China's Heilongjiang
Province, is growing strongly.

Statistics from Harbin Administration for Industry and Commerce show that
45 new foreign-invested companies were set up in the first half of the
year, increasing 2.27 per cent compared with the same period of last year.

Total investment value of the new foreign-funded companies amounted to
US$391.63 million during the same period, up 37.24 per cent year-on-year.

According to the data, investors from 13 countries and regions funded the
new companies. Most of the investors are from Asia.

At present, investors from Asian countries and regions have set up 26
firms in Harbin, accounting for 57.78 per cent of the city's total
foreign-funded firms.

Followed by Japan and the Republic of Korea, China's Hong Kong Special
Administrative Region tops the chart of Asian investors in terms of the
number of companies, total investment value and registered capital.

The investment boom is attributed to the friendly environment of the
city, which boosts the confidence of overseas investors in their ventures
in China, experts said.

So far 11 foreign-invested companies in the city have made additional
investments worth US$56.95 million and lifted their registered capital.

Analysts said that overseas companies prefer setting up their operations
as a sole investor to ensure control of their Chinese ventures.

In the first half of the year, 29 foreign wholly-owned companies were
added, accounting for more than 64.44 per cent of the total number of new
foreign-invested firms in the city and increasing 7.41 per cent
year-on-year.

Meanwhile, seven Chinese companies absorbed foreign capital and joined
the foreign-invested list.

Through mergers and acquisitions, on the one hand, foreign investors
gained access to the local market, and on the other hand, injection of
overseas capital enhanced strength of the asset-restructured companies.

For instance, Harbin Pharmaceutical Group Co Ltd, one of China's leading
medicine makers, raised its registered capital to 3.7 billion yuan
(US$462.5 million), after two overseas investors began to hold stake in
the company last year.

(For more biz stories, please visit Industry Updates)

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