Beijing acts as FDI plunges 13pc

Foreign direct investment into China fell more than 13 percent at 97.6 billion yuan (HK$104.25 billion) last month as the country issued an action plan to stabilize foreign investment.

China issued an action plan yesterday for stabilizing foreign investment in 2025, which was approved by a State Council executive meeting.

The plan will allow foreign investment companies to use domestic loans for equity investment and guide foreign capital to invest in China's services sector.

Meanwhile, China's top financial regulator vowed it will maintain stable and effective credit supply to private firms and will step up support for their loans, an official statement showed yesterday.

The National Financial Regulatory Administration also said they will meet the reasonable financing needs of various real estate enterprises, including private housing enterprises.

The pledges came after a rare meeting held by President Xi Jinping with some of the country's biggest private companies on Monday, as policymakers aimed to shore up business confidence in the world's second-biggest economy.

Reuters