China’s restraints on capital outflows have started to discourage inbound investment into the country, the opposite of the intended effect of the measures, according to the Financial Times. Last year, Beijing began cracking down on outbound investments and stopping companies from remitting capital offshore in an attempt to preserve its rapidly deteriorating foreign reserves, which dipped below $3tn in January for the first time in five years. However, some global investors and advisers say they fear investments could get trapped in China if regulators decide to further tighten controls over company remittances. “The capital controls have had a chilling effect,” said Mario Giannini, chief executive of $330bn alternative investment manager Hamilton Lane. Regulators put into place the capital controls in late November, homing in on the more than $220bn wave of outbound investments Chinese companies made last year. The measures have killed several M&A transactions but have also had wide-ranging effects on other areas of cross-border remittance.