SOE foreign investment risks are being curbed
China is tightening its grip on outbound investment risks affecting the nation’s financial security, with a code of conduct for State-owned enterprises making outbound investments and with a blacklist coming soon. While the code of conduct has yet to be released to the public, the overall regulation framework is the same as the one targeting private companies issued on Dec 18, according to an official with the National Development and Reform Commission who declined to be named. The code for private companies indicates enterprises should exercise caution in high-leverage fundraising in foreign countries, and they need to strengthen efforts to supervise overseas offices ‘activities such as share sales. The code will complement guidelines issued in August, which laid out rules restricting investment in sensitive areas such as property, sports and entertainment, the official said. That guideline and the blacklist system will become major policy tools in curbing investment risks, the official added.