China successfully managed to woo investors to invest in the world's fastest developing economy with investment in August increased 7 per cent as per data provided by the Ministry of Commerce.
The credit goes to various measures taken by the government to sustain adequate economic growth rate when economy has started to show signs of recovery. Premier Wen Jiabao had announced a special stimulus package of 4 trillion yuan that will show its results in next few months. He said that the government will leave no stone unturned for the country to put on the path of economic recovery despite protectionism policies by some nations.
Investment dropped 35.7-percent in July that stood at $7.5 billion in August reporting 7 per cent increase in the month under observation. China's manufacturing sector posted increase in August while service and property sector is yet to come out of financial trouble.
Glenn Maguire, Chief Asia-Pacific economist at Societe Generale SA in Hong Kong, said, "It shows a normalization of business sentiment. With weaker consumer demand globally, companies will have to invest more in low-labor-cost centers to maintain profits and margins."
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