December 6, 2016 / 4:20 PM / 3 years ago

China to curb risks from "irrational" outbound investment, Xinhua says

BEIJING, Dec 6 (Reuters) - China will rein in risks from “irrational” outbound investment deals, although the government will stick to its opening up policy, Xinhua news agency said on Tuesday, citing a variety of officials.

China has announced a string of measures in recent weeks to tighten controls on money moving out of the country, after its currency, the yuan, skidded to more than eight-year lows.

Xinhua cited officials from the National Development and Reform Commission, the Ministry of Commerce, the People’s Bank of China and the State Administration of Foreign Exchange as saying authorities will prevent risks from outbound investment to help maintain a balance in international payments.

“Regulators are paying close attention to recent irrational tendencies in overseas investment in real estate, hotels, studios, entertainment and sports clubs and other areas,” Xinhua said.

They are also monitoring large-scale corporate investment in non-core businesses and companies that have moved money in and out of the country frequently, it quoted officials as saying, urging such companies to make “prudent” investment decisions.

But China will stick to its opening up policy and encourage qualified companies to invest overseas and participate in global market competitions, Xinhua said. (Reporting by Kevin Yao, editing by Larry King)

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