China’s Regulators Told to Turn Cautious on Outbound Spending as Fed Hikes, Sources Say
- Large capital outflows, Fed hikes draw authorities’ attention
- No specific limits set on overseas spending and investments
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Chinese regulators have been asked to exercise greater caution when it comes to reviewing new overseas spending and investment plans amid concerns among senior leaders that higher US interest rates could spur capital outflows, according to people familiar with the matter.
State-owned companies were similarly told that they should be cautious when spending and investing overseas, said the people who asked not to be named because they’re not authorized to discuss the matter publicly. No specific targets or limitations have been set on such expenditure abroad, they said.