China attracted US$9.23 billion in foreign direct investment in May, up 13.43 per cent year-on-year, and higher than the previous month, the commerce ministry said Wednesday.

Foreign direct investment in factories and other projects in the world's second largest economy last month was up from US$8.46 billion in April, when it rose 15.2 per cent from the previous year.

Commerce ministry spokesman Yao Jian announced the figures at a regular briefing in the Chinese capital a day after government data showed inflation hit a near three year high in May.

Analysts say robust growth in China and expectations for a stronger currency have attracted a growing number of overseas investors hoping for a better return on their money as the United States and Europe remain in the doldrums.

But growing concerns that the flood of credit is helping to fuel inflation have triggered a round of monetary tightening as Beijing tries to rein in soaring consumer costs.

In the first five months of the year, foreign direct investment rose 23.4 per cent on year to US$48.03 billion.

channelnewsasia.com