Contracted foreign investment hit US$1.18 billion last month, up 52.5 percent from the same month of 2002, reported the Shanghai Foreign Economic Relations and Trade Commission.

A total of 338 foreign-funded companies were established in January - up 47 percent year-on-year.

"Although the industrial sector still drew the majority of the foreign funds, the rise of funds pouring into the service sector is conspicuous," said Yu Huimin, a commission official.

According to the commission, 172 projects in the service sector drew US$395 million in contracted funds, up 145 percent from a year ago. The growth of industrial investment was 30.8 percent.

Among the big winners in January were Shanghai Pudong International Container Port Co. Ltd., which absorbed US$92 million, and Shanghai Volkswagen Co. Ltd., which took in an additional US$82 million foreign investment.

City officials pledged at a recent news briefing to further open its service sector to foreign investors this year in an effort to lure more funds from top multinationals in tertiary industries.

They include such industries as logistics, retail, medication and real estate.

Last year, Shanghai received US$10.6 billion in contracted foreign investment, up 43.4 percent year-on-year.

Funds actually used were US$5 billion, up 14.5 percent.

By the end of last month, Shanghai had 28,078 overseas-invested companies, with contracted funds worth US$64.6 billion.

Hong Kong, the Virgin Islands and Japan are the city's top overseas investors.

(eastday.com Feburay 4, 2003)