China's Foreign Direct Investment up 37.9%

The country's foreign exchange reserves grows about $100 million every hour.

Foreign direct investment into China rose in May, increasing 37.9% from the same month a year ago to $7.8 billion, the government said June 12.

In the first five months of the year, foreign enterprises invested $42.8 billion in China, jumping 55% from the same period in 2007, the commerce ministry said.

Foreign direct investment, along with booming exports, are among the top factors resulting in China's massive build-up in foreign exchange reserves and excess liquidity in the financial system. China's foreign exchange reserves, already the world's largest, hit $1.76 trillion by the end of April, and currently increase at a rate of about $100 million every hour.

Hong Kong, the British Virgin Islands and Singapore were the top three sources of investment in China in the first five months of the year, the ministry said.

Copyright Agence France-Presse, 2008

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