International Edition

Sunday

September, 25, 2016

Breaking News, World News and Taiwan News.
About Us
Subscribe
Advertise
Contact Us

SAFE supports real and reasonable overseas M&A

State Administration of Foreign Exchange (SAFE)supports Chinese enterprises' "real and reasonable" overseas mergers and acquisitions, said a senior official of SAFE during the administration's news briefing on Thursday.

According to Guo Song, director of current account management department, SAFE, the administration fully encourages Chinese enterprises to launch overseas mergers and acquisitions based on the principle of "real needs".

China's overseas direct investment (ODI) has shown a rapid growth recently. Zhang Xiangchen, deputy international trade representative with China's Ministry of Commerce (MOC), said at a news conference also held on Thursday that China achieved net capital outflow for the first time last year as China's ODI surpassed foreign direct investment (FDI) in 2015.

According to the ministry,the number of Chinese enterprises' overseas mergers and acquisitions was 572 in 2015, with the companies investing $54.44 billion in 62 countries and regions. And the rapid growth continues this year.

Guo though admitted that the rapid growth of ODI has influence on China's foreign exchange situation. "But from international experience, after an economy becomes a middle-income country, it will gradually change from net capital inflow country to net capital outflow country" Guo said, "which is a normal and reasonable thing."

He also pointed out that SAFE will prevent the so-called return of "Chinese concept stock", those overseas listing Chinese enterprises, for the purpose of arbitrage.

SAFE will support normal and compliant overseas investment, and will strictly crack down on fake overseas investments, he added.

Xu Weigang, deputy director of General Affairs Department, SAFE, said the administration will pay attention to both promoting trade and investment facilitation and preventing foreign exchange risks.

According to Zhang Shenghui, director of Supervision and Inspection department, SAFE, in the first half of 2016 SAFE launched two non-spot inspections and found violations involving more than $8.4 billion.

"We found that some enterprises or individuals were transferring property through overseas investment," Guo Song said. "This will be our focus," he added.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive our promos
 Respond to this email
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search