No surprise: UN report says Hong Kong and China lead FDI chase

No surprise: UN report says Hong Kong and China lead FDI chase    Hong Kong retained its position as Asia's second-largest destination for foreign direct investment, according to the World Investment Report 2006 released today by the United Nations Conference on Trade and Development.
   Mainland China retained its No. 1 ranking. Together, Hong Kong and the mainland accounted for more than half of FDI inflows in the region last year. The report found that global FDI inflows rose substantially in 2005 for the second consecutive year, reaching $916 billion, up 29 percent from 2004. The report said FDI grew in all sectors, with services remaining the dominant sector. By contrast, the share of the manufacturing sector in the total fell in 2005.
   Asia remained the largest recipient of FDI among developing regions. Mainland China again led Asia, with $72.4 billion in 2005. FDI flows to Hong Kong increased 5.6 percent to $35.9 billion. Hong Kong's FDI inflow was greater than the total of the next three largest FDI recipients in Asia — Singapore ($20.1 billion), South Korea ($7.2 billion) and India ($6.6 billion).
   On a global scale, Hong Kong ranked sixth in FDI in 2005, and continued to be classified as one of the 'frontrunner' economies as a result of the high rankings in both UNCTAD's 'Inward FDI Potential Index' and 'Inward FDI Performance Index.'