Foreign direct investment in Shanghai in September surged by a record speed and volume for this year, propelling the city to the frontline as an attractive place for investors.

The city drew foreign funds of US$2.7 billion last month, up 44.6 percent from a year earlier, according to the Shanghai Statistics Bureau.

“Shanghai continues to stand at the frontline of attracting foreign investment,” said Xue Jun, an analyst with CITIC Securities Co. “With the boost from projects in the pilot free trade zone and the Disneyland park, Shanghai has seen a big increase in its foreign direct investment last month.”

An official with the Shanghai Commission of Commerce said the acceleration in FDI in September was also due to some delayed projects that received approval in the month.

Comparatively, China’s inbound foreign investment rose just 1.9 percent last month.

Shanghai remains China’s biggest destination for foreign investment because in the first three quarters, the city drew US$15.2 billion in foreign investment, up 12.9 percent year on year. In the same period, the country’s FDI fell 1.4 percent.

“Foreign investment has played a key role in accelerating the city’s economic growth and restructuring,” Xue said. “Shanghai also focuses on attracting quality investment to fit the city’s growth needs.”

As Shanghai aims to build itself into a global financial and shipping hub, the city’s services sector lured a whopping 132 percent surge in foreign investment of US$2.5 billion in September, the bureau said.

“We can see a clear trend that investment flows more into the services sector, in tune with the city’s goal of growing into a global financial and shipping center,” Xue said.

The manufacturing sector drew US$284 million in investment, up 20.5 percent.

Shanghai’s pilot free trade zone has also become attractive to foreign investors after operating for a year. As of mid-September, 1,677 foreign-funded companies were formed in the FTZ, accounting for nearly half of the city’s total.