Xiamen, China, Sep 10 (Xinhua) China is fast turning from a major investment importer to a capital exporter, with Chinese overseas investments likely to reach $60 billion by 2010, a UN official said.

UN Industrial Development Organisation (UNIDO) director general Yumkella said this at the 2006 International Investment Forum that kicked off Friday in Xiamen, Fujian province.

China's foreign direct investment (FDI) mainly flows to Asian and African countries, he said.

Qiu Xiaohua, director of the National Bureau of Statistics, said China would try to reduce its foreign exchange reserves, which hit $941.1 billion at the end of June, to help ease the pressure on the appreciation of the yuan.

This means Chinese enterprises will continue to pour their funds into overseas investments in coming years.

China's FDI grew on average 65.6 percent between 2000 to 2005, said Zhao Chuang, an official with the ministry of commerce.