SHANGHAI approved 20 projects abroad last month, the value of which increased nearly sixfold from a year earlier to US$239.5 million, the Shanghai Commission of Commerce said today.

Private companies accounted for 45 percent of investors, with their funds amounting to 12.7 percent of the total. State-owned enterprises, although making up just 25 percent of investors, accounted for 79.1 percent of total funds. Foreign firms based in Shanghai held the rest.

"The surge in the city's non-financial outbound investment benefits from a strengthened recovery in China and the global economy," said commission officials. "Such a good beginning lays a solid foundation for future increases."

Li Maoyu, an analyst at Changjiang Securities Co, said enthusiasm among domestic investors for overseas opportunities may continue.

"The demand is boosted by the relatively low price of overseas projects at the moment after the global financial crisis," Li said. "Also, Chinese investors are eager to learn from foreign practice, hoping it can facilitate their businesses in China."

Li added Shanghai investors were taking the lead in this round of rush of outbound foreign investment.

About 75 percent of outbound investment in the city flowed to Europe in January, with a value of US$179.5 million. It was followed by Asia, where investment accounted for 20.4 percent of the total.