In response to the second quarter slide in GDP growth, the Chinese government introduced a series of economic measures in July to boost growth and stabilize market expectations, including an increase in investment spending and stronger export support. Thus, the economic rebound can be predominantly attributed to relatively greater investment in manufacturing and export growth. However, the foundation of the Chinese economy remains fragile, and the fourth quarter may see another flattening or dip in the GDP growth rate. Year-to-date inbound investment reported favourable growth statistics, bucking its negative trend in 2012. Hong Kong was the largest contributor of M&A funds to China, while the consumer goods and services industry represented the largest recipient of inbound investment from foreign countries. Europe continues to be a large contributor to FDI, after its relatively slack contribution in 2012.
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