China tightens investment rules for SOEs

China issued regulatory rules on outbound investments by centrally controlled state firms, the state asset regulator said on Wednesday, the latest move by Beijing to tighten controls on money moving out of the country and stabilize a faltering yuan. The State-owned Assets Supervision and Administration Commission (Sasac) said it would step up supervision on outbound investments, two documents on its website showed. The regulator also said it would establish a negative list of investment projects that centrally controlled state firms would not be allowed to invest in. According to the South China Morning Post, it was not clear if local government firms were excluded from the new rules. Sasac did not specify which industries would be included on the negative list. Firms must strengthen risk management and ensure the safety of their overseas assets, the commission added.