(Yicai Global) Dec. 9 -- China's government has actively tightened up regulation for investment projects overseas, requiring Chinese companies to be more transparent about sources of funding, the National Development and Reform Commission said.
Applicants are required to disclose more information regarding the method, content, price and source of funding in their bid, China News Service reported.
The commission also requires applicant companies to specify the source and objectives of their overseas investment projects and why the foreign company decided to sell.
In addition, they must disclose their latest production figures, financial status and the equity and share price information of target companies. Conclusions of due diligence reports on their economic, technological, legal, financial, community-related and environmental affairs are to be submitted.
All of China's regulators are closely monitoring excessive foreign investments to curb capital flight. China’s foreign reserves fell USD69 billion to USD3.05 trillion to counteract further depreciation of the yuan.
Foreign investments targeted by the new regulation include the real estate, hospitality, cinema, entertainment and sports club sectors, declared officials from the NDRC, China’s commerce ministry, central bank and its foreign exchange regulator.