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China has become the world's third largest foreign direct investment (FDI) recipient, according to the World Investment Report 2006.

According to the report released by the UN Conference on Trade and Development (UNCTAD) on Monday, China is also the largest FDI destination of all developing countries, receiving US$72.4 billion of FDI in 2005.

The report showed that the FDI into China's financial services sector hit a record high of US$12 billion in 2005.

At the same time, Chinese companies have been actively investing overseas, according to the report.

Between 2002 and 2005, the overseas investment of Chinese multinationals registered an average annual growth of 65.6 percent.

By the end of June this year, China's investment overseas totaled US$63.64 billion, the report said.

(Xinhua News Agency October 17, 2006)