Weaker FDI to China linked to seasonality

Foreign direct investment (FDI) in China grew at its weakest pace in six months in February, but analysts warn that seasonality may explain the swings even as a weakening economy continues to dent investor confidence.

February FDI rose by just 0.9% from a year earlier, slowing sharply from a 29.4% jump in January, adding to mostly weak February data, which has raised expectations of further policy steps from Beijing to spur growth.

“We expect FDI to maintain slow growth this year, probably similar to last year,” said Zhao Hao, China economist at ANZ in Shanghai.