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China Codifies Crackdown on ‘Irrational’ Outbound Investment

  • State Council plans restrictions on property, hotels, sports
  • Authorities will also ban overseas investment in gambling
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China laid down rules restricting overseas investments, stepping up its campaign against what it described to be 'irrational' acquisitions of assets in industries ranging from real estate to hotels and entertainment. Bloomberg's Tom MacKenzie reports on 'Bloomberg Daybreak: Australia.' (Source: Bloomberg)

Bloomberg News
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China formally laid down new rules on overseas investments, making explicit its de facto campaign against "irrational” acquisitions of assets in industries ranging from real estate to hotels and entertainment.

The authorities set out three categories -- banned, restricted and encouraged -- outlawing investments in gambling and sex industries, while backing companies to support the nation’s ambitious "Belt and Road" initiative backed by President Xi Jinping, the State Council said in a statement Friday. Property, hotel, film, entertainment and sports investments will now be subject to restrictions, the statement said.