Inflows to China rise 7%

       Foreign direct investment (FDI) in China, sapped by the global financial crisis, climbed for the first time in 11 months in August from a year earlier as the nation's economic recovery gathered pace.
       Investment rose 7% to US$7.5 billion,the Ministry of Commerce said at a briefing in Beijing on Wednesday. That compared with a 35.7% drop in July. Investment in the first eight months fell 17.5%.
       China's rebound from the slowest growth in almost a decade may attract more money from abroad. FDI in manufacturing climbed in August, while services and property continued to decline,commerce ministry spokesman Yao Jian said.
       "Global risk appetite is coming back,"noted Isaac Meng, a senior economist at BNP Paribas SA in Beijing."For multinational companies, China is the place where growth is the most robust."
       Premier Wen Jiabao pledged on Sept 11 to fully implement the 4-trillion-yuan (19.75-trillion-baht) stimulus package and keep monetary policy "moderately loose" to sustain the recovery.
       Economic growth rebounded to 7.9%in the second quarter from a year earlier,after slowing to 6.1% in the three months through March. The latest FDI figure "shows a normalisation of business sentiment," said Glenn Maguire, chief AsiaPacific economist at Socie'te' Ge'ne' rale SA in Hong Kong."With weaker consumer demand globally, companies will have to invest more in low-labour-cost centres to maintain profits and margins."