China may publish rules this year on outbound investment by Chinese firms that would spell out the sectors in which investing is encouraged and those where it is restricted. Chinese regulators have clamped down in recent month on outbound deals as part of efforts to stem rising capital outflows that have contributed to a weakening yuan. The state foreign exchange regulator has said the government will more closely monitor “irrational” investment in property, entertainment, sports and other sectors. According to the South China Morning Post, efforts to contain outbound investment appear to be having a significant effect. Non-financial outbound investment fell 52.8% from January to February from the same period last year, with amounts in the property and entertainment sectors down over 80%.
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