China clarifies overseas investment ruling

China clarifies overseas investment ruling

After a period of uncertainty, China has formally clarified new rules on overseas investments. 

The new legal framework comprises three categories; banned, restricted and encouraged.  In a positive sign for the region, companies engaging in the nation’s ambitious One Belt One Road initiative lie in the ‘encouraged’ category. The new rules will likely have an impact on the region’s construction and property markets which have relied in recent years on Chinese investment. 

Investments in the gambling and sex industries have been banned while investments in property, hotels, film, entertainment, sports,obsolete equipment, and investments that contravene environmental standards are restricted. 

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