China\\\'s FDI slows again in October

BEIJING, Nov 18 (Reuters): 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 $95.9 billion in foreign direct investment (FDI) in the first 10 months of 2014, the Ministry of Commerce said on Tuesday, down 1.2 per cent from a year earlier. In October alone, the country attracted $8.5 billion in FDI, up 1.3 per cent 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 $53.1 billion worth of FDI in the first 10 months of the year, up 6.6 per cent from the same period a year ago, and much higher than the $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 per cent on an annual basis and that from Britain surged 32.4 per cent.