(Yicai Global) Dec. 19 -- China has issued a new guideline for private enterprises which plan to make overseas investments. The new guidelines issued by China's top macroeconomic planner, National Development and Reform Commission, and five other departments, are part of the country's efforts to rein in capital outflow, which is key to maintaining economic stability.

Private enterprises now are required to apply for register or approval before making overseas investment in accordance with relevant provisions. 'The Guideline for Overseas Investment of Private Enterprises' stipulates that private enterprises shall not illegally obtain foreign exchange, transfer assets or conduct money laundering through bogus overseas investment.

China's private enterprises have accelerated their overseas investment noticeably in recent years. To improve the quality and level of "going global," the NDRC and other departments jointly formulated the new guidelines.

Private enterprises shall enhance supervision and administration of their overseas branches in terms of transferring financial resources, financing, transferring equity and other interests, reinvestment and guarantee, prudently carry out highly-leveraged investments and standardize the investment in overseas derivatives and stipulations.

Before the acquisition of overseas enterprises, private enterprises shall conduct environmental due diligence on the target enterprises, focusing on assessing the hazardous wastes and the soil and groundwater pollution they caused in the process of previous operation, as well as other environmental liabilities related to the target enterprises.

When China's private enterprises track and plan to adopt credit insurance of domestic financial institutions for overseas projects, they shall not make any commitments on foreign financing or insurance before obtaining the written letters of loan and underwriting from the financial institutions concerned, the Guideline states.

The Guideline also makes it clear that private enterprises shall adhere to fair competition in overseas investment and operation, and oppose to commercial bribe. They shall not offer bribes to local public officials, officials of international organizations or personnel of related enterprises, collude in bidding, defame competitors, falsely publicize their performances or take other unfair competition tricks.