SOE for­eign in­vest­ment risks are be­ing curbed

China Daily European Weekly - - News Digest -

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.

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