China is set to introduce tighter rules for state-run companies that wish to invest overseas, including creating a blacklist of badly-behaving firms, a government source told China Daily.
The government is also working on an outbound investment code of conduct for state-owned enterprises, which is yet to be made public. The regulations are said to be similar to the code for private companies published on Monday, the official said. The code for private companies states that enterprises should exercise caution in high-leverage fundraising in foreign countries, and that they should strengthen efforts to supervise overseas offices’ activities, such as share sales.
That guideline and the blacklist system will become major policy tools for curbing investment risks, according to the official. Another official added that several companies have already been put on the blacklist.