London ranks as the most popular destination for Chinese companies expanding into Europe according to the Ernst & Young European Investment Monitor.

The news comes from Think London, the foreign direct investment agency for London, and figures show that since 1997, London has attracted 34 Chinese foreign direct investment (FDI) projects, with 27 of these projects having been completed since 2002. London attracted 15% of all Chinese FDI into Europe since 2002, the highest share for any European city.

"London is seen by Chinese companies as a natural base for expanding into the wider European, African and Middle East markets", said Michael Charlton Think London's Chief Executive. "Over the past four years, London has attracted four times as many Chinese FDI projects as Hamburg or Paris."

In an effort to help more Chinese companies expand into London, Think London recently opened an office in Beijing. The move reflects the growing importance of China to London's economy. In 2004 alone, investment into London from greater China totaled GBP 120 million.