China may publish rules on outbound investment this year - state media


Reuters

BEIJING, March 21 (Reuters) - China this year may publish
rules on outbound investment by Chinese firms that would spell
out the sectors in which investing is encouraged and those where
it is restricted, state media reported on Tuesday.
    In recent months, Chinese regulators have clamped down on
outbound deals as part of efforts to stem rising capital
outflows that have contributed to a weakening yuan.
    Chinese Commerce Minister Zhong Shan said on March 11 that a
small number of Chinese companies had invested overseas "blindly
and irrationally" in investments China does not encourage.
    The state foreign exchange regulator has said the government
will more closely monitor "irrational" investment in property,
entertainment, sports and other sectors.
    Efforts to contain outbound investment appear to be having a
significant effect. Non-financial outbound investment fell 52.8
percent in January-February from the same period last year, with
amounts in the property and entertainment sectors down over 80
percent. [nL3N1GT54D]
    The report on Tuesday in the state-run Economic Information
Daily said that the Ministry of Commerce and the National
Development and Reform Commission were leading the formulation
of rules.
    "Overseas investments that produce social and economic
benefits, that are in line with the country's 'One Belt One
Road' and global industrial capacity cooperation strategies will
be encouraged," the article quoted an unidentified person in
industry as saying.
    The person was also quoted as saying "'blind' and irrational
investments will not be encouraged and supervision will be
increased. Investments that violate laws in the target country
or in China and other harmful behavior will be forbidden and
punished."

 (Reporting by Elias Glenn; Editing by Richard Borsuk)
 ((Elias.Glenn@thomsonreuters.com; +86 138 1600 5903; Reuters
Messaging: elias.glenn@thomsonreuters.com))

Keywords: CHINA ECONOMY/INVESTMENT



This article appears in: World Markets , Politics , Stocks


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