Attempts by Chinese industrial companies to transform into media enterprises have been dealt a blow by new regulations aimed at curbing capital flight, according the Financial Times. The Chinese currency controls could scupper the metamorphosis of enterprises such as Zhejiang Jinke Entertainment, formerly known as Zhejiang Jinke Peroxides, an industrial chemical company from southern China. Its move from a lackluster sunset industry towards becoming a global entertainment powerhouse had been swift. In February, it bought a local mobile gaming company for Rmb2.9bn ($420m); in July, it officially changed its name and said it would buy more entertainment assets. But last Tuesday, four Chinese regulators issued a joint statement saying they were monitoring the tendency of “irrational” overseas investment in several industries, specifically real estate, hotels, film, entertainment and sports clubs, casting doubt on the transformations.
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