As KPMG had expected, China’s fourth quarter GDP growth rate was 7.7%, decreasing by 0.1 percentage point compared to the third quarter. For the full year 2013, GDP grew by 7.7%. Fixed asset investment was volatile and saw a year-on-year decline in growth. Full year 2013 consumption grew at a much slower pace, when compared to 2012, but recovered slightly at the end of the year. Foreign trade also experienced quite substantial volatility, especially due to abnormal expansion in the first four months, which was predicated on false exports to Hong Kong. Prior to end of June, monetary policy was relatively loose. However, the interbank lending rate and other interest rates increased substantially, causing liquidity in the financial system to dry up; in the short-term rates eased downward, but trended back up toward the end of the year. In 2014, we expect that the government will introduce a series of reform measures, and GDP will continue to grow at a slightly slower pace of 7.6%. Foreign direct investment (FDI) not only bounced back into positive growth territory in 2013, it broke its annual record set back in 2011 (USD116 billion). In 2013, total FDI into China amounted to USD117.6 billion, up 5.25 percent versus 2012.The service sector was the primary reason for growth, as it received USD61.45 billion, rising by 14.15 percent year-on-year, while the manufacturing sector attracted USD45.56 billion, declining by 6.78 percent year-on-year. Merger and acquisition (M&A) activity continued to be a significant contributor to FDI, representing slightly over 30 percent of the total amount (USD36 billion). Companies from Hong Kong were the primary source of M&A activity, contributing nearly half of all M&A deal value in 2013. The EU, Singapore, and the US were the other major regions that continued to have significant M&A interest in China. Real estate, consumer goods and services, and industrials were the lead industries of M&A activity.