BEIJING, Dec. 14 (Xinhua) -- Foreign direct investment (FDI) into the Chinese mainland surged 90.7 percent year on year to hit nearly 125 billion (around 19 billion U.S. dollars) yuan in November thanks to fast growth in new foreign-funded companies.
The number of new foreign-funded companies surged 161.5 percent to 4,641 in November, according to data from the Ministry of Commerce (MOC).
The growth rate was dramatically higher compared with October, when the country's FDI rose 5 percent year on year, according to the MOC.
In the first 11 months, FDI into the Chinese mainland rose 9.8 percent year on year to reach 803.62 billion yuan, MOC spokesperson Gao Feng said at a press conference.
The FDI growth was much faster than the 1.9-percent year-on-year increase registered in the first 10 months, according to Gao.
FDI in the service sector posted strong growth while the manufacturing industry continued to rise.
In the first 11 months, FDI in the service sector climbed 13.5 percent year on year to 582.75 billion yuan, or 72.5 percent of the total.
Meanwhile, the manufacturing sector attracted FDI worth 207.76 billion yuan, up 0.2 percent year on year, accounting for 25.9 percent of the total FDI.
Some 60.15 billion yuan flowed into the high-tech manufacturing sector, an increase of 9.9 percent year on year.
The high-tech service industry actually used 177.1 billion yuan in FDI, more than double the amount for the same period last year.
FDI into central China registered rapid growth in the first 11 months, with total volume up 29 percent year on year to 52.09 billion yuan.
Analysts attributed the fast FDI growth to the fast increase of new foreign-funded companies as well as effective policy that has boosted the confidence of foreign investors, and capital injection for some big projects.
The number of new foreign-funded companies hit 30,815 in the first 11 months, up 26.5-percent year on year, according to Gao.
ODI DOWN 33.5 PCT
In contrast, Thursday's MOC data showed ODI from January to November fell 33.5 percent year on year as authorities curbed irrational investment overseas.
Domestic investors spent a total of 107.55 billion U.S. dollars on 5,796 enterprises from 174 countries and regions during the period, the MOC said.
The decline narrowed from the 40.9-percent drop for the first 10 months this year.
"Irrational outbound investment has been further curbed," Gao said.
China's ODI has seen rapid growth in recent years. However, noting an "irrational tendency" in outbound investment, Chinese authorities have set stricter rules and advised companies to make investment decisions more carefully since last year.
In a document released in August, the State Council said overseas investment in areas including real estate, hotels, cinemas, and entertainment would be limited, while investment in sectors such as gambling would be banned.
In November, the National Development and Reform Commission, China's economic planning body, released a new draft rule on outbound investment, including stipulations on the investment activities of firms established overseas by domestic companies.
Investment in the first 11 months mainly went to leasing and commercial services, manufacturing, wholesale and retail, and information technology sectors, the statement said..
No new projects were reported in property, sports or entertainment.
Meanwhile, ODI to countries involved in the Belt and Road Initiative has been encouraged.
From January to November, China's non-financial ODI in countries involved in the Belt and Road Initiative continued to expand, totaling 12.37 billion U.S. dollars in the first 11 months, the MOC said.
Belt and Road deals accounted for 11.5 percent of total investments, up from 8.3 percent a year ago, it added.