China Daily Global Edition (USA)
Province’s investment attraction holds despite overseas dip
Despite the drop in overseas investment worldwide, Fujian province in East China is maintaining stable growth momentum in attracting overseas investment.
Data from the Fujian Department of Commerce show that 969 new overseas-funded companies were launched in the province in the first half of this year, involving a total of 34.27 billion yuan ($5.2 billion) in overseas investment, up 8.7 percent year-on-year.
The addition enabled the total number of overseas-invested companies in the province to reach 27,300, with a total combined investment of more than $242.7 billion, roughly $109.5 billion from overseas investors.
The momentum remained on track after July, as Hong Kong-headquartered Shangri-La Hotels and Resorts has announced it will open a new property in Putian, Fujian in 2020. Archer Daniels Midland, a global Fortune 500 company headquartered in the United States, is also advancing its construction of an animal feed production plant in the province.
As a series of key projects are advancing in the province, including the China (Fujian) Pilot Free Trade Zone, Fujian is among the most popular investment destinations and is one of the most competitive regions in China, an official from the commerce department said.
To inject more vigor into the market, the local government is set to streamline its administrative procedures and to further ongoing reforms, the official said.
Large investment projects play a leading role in drawing investment to the region, according to the provincial government.
A total of 46 large projects, each involving at least 100 million yuan in investment value, were signed with the province in the first six months of the year. The total investment value hit 13.35 billion yuan, an increase of 41.7 percent year-on-year.
Fujian is working hard to create a more business-friendly environment, is continuing to attract more overseas investment and is striving to transform its multifaceted advantages into strengths in attracting overseas investment, Li Dejin, vicegovernor of the province, told Chinanews.com.
With the ongoing BRICS Summit and upcoming Xiamen International Fair for Investment & Trade hosted in Xiamen, Fujian, this month, the province needs to make full use of the events to showcase its policies and business environment, in a bid to attract high-quality overseas investors and businesspeople, Huang Xinluan, head of the provincial commerce department, said.
Hong Kong, as Fujian’s largest overseas investment source, has contributed nearly $80 billion to date, roughly two-thirds of the total overseas capital that has been drawn to the province.
Hong Kong and Fujian have a long and rich tradition of cooperation, Li said.
To date, nearly 1,120 companies headquartered in Fujian have invested about $10 billion in total in Hong Kong, and approximately 80 Fujian companies are traded on the Hong Kong Stock Exchange, raising more than HK$100 billion ($12.78 billion) in financing.
As an international financial, trade and shipping hub, Hong Kong has a global service network and rich reservoirs of professionals and specialists, especially in the modern service industry, which directly links to Fujian’s development needs, Li said.