BEIJING • China has laid down explicit rules restricting overseas investments, stepping up its campaign against what it described as « irrational » acquisitions of assets in industries ranging from real estate to hotels and entertainment..
BEIJING • China has laid down explicit rules restricting overseas investments, stepping up its campaign against what it described as « irrational » acquisitions of assets in industries ranging from real estate to hotels and entertainment.
The authorities set out three categories – banned, restricted and encouraged – outlawing investments in gambling and sex industries, while encouraging firms to support the Belt and Road Initiative backed by President Xi Jinping, the State Council said yesterday.
Property, hotel, film, entertainment and sports investments will now be subject to restrictions.
« Profound changes are taking place in international and domestic situations, and Chinese enterprises face not just relatively good opportunities but also various risks and challenges in overseas investments, » the State Council said.
China has embarked on a drive to reduce leverage in financial markets and snuff out systemic risks ahead of a Communist Party leadership transition later this year, while remaining vigilant for accelerated capital outflows that threaten to weaken the nation’s currency.
