CHINA'S 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.