China's foreign direct investment fell for the fourth straight period on a cumulative basis in October, underscoring investor caution as the world’s second-largest economy cools.
China drew US$95.9 billion in foreign direct investment (FDI) in the first 10 months of 2014, the Ministry of Commerce said yesterday, down 1.2 percent from a year earlier.
In October alone, the country attracted US$8.5 billion in FDI, up 1.3 percent from a year earlier, the ministry said.
Investment flows into China are an important gauge of the health of the world economy and is also a good indicator of where capital is flowing within the country.
In line with China’s manufacturing slowdown, the data showed investors were flocking to the services industry.
The Chinese services sector attracted US$53.1 billion worth of FDI in the first 10 months of the year, up 6.6 percent from the same period a year ago, and much higher than the US$32.5 billion that flowed into the manufacturing industry.
Among the 10 countries that were the biggest investors in China, investment from South Korea leapt 26.4 percent on an annual basis and that from Britain surged 32.4 percent.
In contrast, investment from Japan plunged 42.9 percent from a year earlier while FDI from the United States fell 16.2 percent and European Union dropped 23.8 percent.