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Wednesday, January 18, 2017, 17:52

China tightens regulations on investment by state firms

By Xinhua

China tightens regulations on investment by state firms
The State-owned Assets Supervision and Administration Commission of the State Council said on Jan 18, 2017, that it will release a negative list detailing two categories of investment projects -- those that are off-limits for entry and those that demand special regulation. (Photo / IC )

BEIJING  -- Chinese regulators on Wednesday released revised regulations on investment by central state-owned enterprises (SOEs), introducing a "negative list" approach in the supervision of investment projects.

For projects that are not on the list, central SOEs may make investment decisions on their own

The State-owned Assets Supervision and Administration Commission of the State Council said it will release a negative list detailing two categories of investment projects -- those that are off-limits for entry and those that demand special regulation.

For projects that are not on the list, central SOEs may make investment decisions on their own .

There are currently more than 100 state firms directly regulated by the central government.

The new rules also set stricter requirements for state firms' overseas investment , stipulating that such investment should focus on the firms' main business.

In principle, central state firms are not allowed to conduct non-core business investment overseas, according to the regulation, which aims to enhance risk control for overseas assets.

China's central SOEs made total profits of 1.23 trillion yuan (around US$179.6 billion) in 2016, up 0.5 percent year on year, earlier official data showed.

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