China's New Foreign Investment Hot Spots

North-eastern, central, and western China are becoming new hot spots for foreign capital, according to the "Report on China's Regional Financial Stability" issued on July 31 by the Shanghai headquarters of the People's Bank of China, Xinhua reported.

The report showed that in 2006 the actual foreign direct investment (FDI) in eastern, central, western and north-eastern China reached 103.8 billion US dollars, a substantial increase over the previous year. The FDI level in Tibet increased by 560 percent, while the percentage in Xinjiang and Liaoning was 120 and 67 percent respectively.

The report also showed that China took risk disposal measures, like shutdowns and bankruptcy, to deal with eight high-risk securities companies in 2006. Administrative liquidation of 16 high-risk financial institutions was almost completed and China's regional financial risks were effectively disposed or eliminated in 2006.