Foreign direct investment in May totalled US$6.4 billion (S$9.32 billion), down 17.8 per cent from the same month last year, while the number of new approved foreign companies reached 1,649, down 32 per cent year-on-year, ministry spokesman Yao Jian said at a news conference.

It was the first time since the 1998 Asian financial crisis that three top investment indicators - actual foreign direct investment, contractual foreign investment and new approved foreign companies - all declined, Mr Yao said.

China is a top destination for investment but companies have cancelled or postponed spending on factories and other assets due to weakening trade and the global financial turmoil.

Foreign direct investment last year rose 23.6 per cent from 2007 to US$92.4 billion, though growth began to weaken toward the end of the year. -- AP