Foreign direct investment in China rose 11.1 percent year on year in August to $8.45 billion, the Ministry of Commerce announced on Thursday.

For the first eight months of the year, China took in a total of $77.6 billion in foreign direct investment, up 17.7 percent from the same period a year earlier, the ministry said in a statement.

In July, China took in $8.3 billion in foreign direct investment, up 19.8 percent over the same month in 2010.

Although overseas investment remains robust, the ministry did not explain why the growth rate was slowing.

Analysts say strong growth in China and expectations of a stronger yuan have attracted a growing number of foreign 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.

China's inflation rate fell to 6.2 percent in August from a more than three-year high of 6.5 percent in July.

channelnewsasia.com