Chinese financial institutions attracted US$1.67 billion in foreign equity investments in the first three months, up from US$620 million in the same period a year ago, according to data from the foreign exchange watchdog.

Meanwhile, Chinese banking, securities and insurance companies made a total of US$2.41 billion in net outbound equity investments in the first quarter, a jump of 55 percent annually, the State Administration of Foreign Exchange said on its website yesterday.

Last year Chinese financial institutions attracted US$81.2 billion in foreign equity investments, and invested US$77.8 billion in outbound equities.The financial companies, especially lenders, are forced to expand overseas as the more liberal domestic financial market fuels fiercer competition that erodes margins. 
 
The Ministry of Commerce and the National Development and Reform Commission are preparing to draft the Overseas Investment Law. The drafting of the law will primarily target the standardization of overseas investments by Chinese enterprises and the curbing of unfair competition as well as encourage healthy competition and protect the foreign investment interests of Chinese enterprises.