Q3 FDI in financial institutions declines

Foreign direct investment in China's financial institutions edged down to US$1.53 billion in the third quarter of this year, compared with the previous three months, the foreign exchange regulator said yesterday.

The decline occurred after FDI in the institutions almost tripled from US$623 million in the first quarter to US$1.79 billion in the second quarter.

Meanwhile, Chinese financial firms spent US$901 million in net outbound equity investments in the third quarter, the State Administration of Foreign Exchange said.

Their outbound investment grew from US$375 million in the second quarter, but were lower than the first quarter's US$1.55 billion.

China's financial institutions are going overseas to seek good bargains after the global financial crisis.

The Industrial and Commercial Bank of China, the world's biggest bank by market value, became the first Chinese lender to enter Argentina after it won regulatory approval this month to buy 80 percent of Standard Bank Argentina in a deal that media reports said will cost the ICBC US$650 million.

Li Lihui, president of the Bank of China, also said earlier this month that the bank will expand in overseas markets by taking advantage of current low valuations to buy financial assets cheaply.