New online system to register outflow of Chinese companies investment

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In an attempt to reduce the amount of investment going overseas, the National Development and Reform Commission has issued new rules for Chinese companies that wish to invest into real estate or acquire other companies.

This is the last attempt to stop the withdrawal of capital from the country, due to the trend established in recent years, and which could threaten China’s financial stability, according to regulatory structures.

The new rules establish the obligation to apply online in a new online system with detailed information about the investors, the content and scale of the investment project and the amount of Chinese capital involved. It is also necessary to analyse the impact of the project on national interests and national security.