Recruiting in China

FOREIGN investment is expected to continue to pour into Shanghai at a healthy pace after contracted funding paced by the service industry met forecasts in 2006.

The city approved 4,061 foreign-invested projects with contract value totaling US$14.6 billion last year, a 5.4 percent increase over 2005, the Shanghai Foreign Economic Relations and Trade Commission reported yesterday.

Among the new projects, 2,962 deals worth US$9.8 billion were in the service industry, the city's trade and investment authority said.

"Contracted foreign investment in the service industry jumped 33.5 percent in 2006," said the commission's Chen Zhangyuan.

The service sector contributed 67 percent of contracted foreign investment to the city's total last year.

Shanghai's foreign direct investment - the amount actually received - exceeded US$7 billion in 2006, compared with US$6.9 billion a year ago, the authority said.

"The retail sector, which featured a batch of world-famous brands landing in the city, some service outsourcing projects and rapidly expanding overseas financial service projects fueled the growth in the service sector," Chen said. "In addition, investments in energy, environmental protection, information technology and petrochemicals were very active in the past year."

Shanghai is no longer posting double-digit growth in attracting foreign funds as it focuses on attracting high-value-added investment projects that help optimize the city's industrial mix.

Shanghai is now home to 154 multinational regional headquarters and 196 research and development centers.