BEIJING (Reuters) - China's finance ministry has issued guidelines on overseas investment of state-owned enterprises (SOEs), amid a campaign to tighten controls on outbound investment and financial risks.
SOEs have been leading China's "go out" drive with growing overseas investments, but they have encountered problems of low returns on investment and weak profitability, the ministry said.
The guidelines will help "strengthen financial management of overseas investment of state-owned enterprises, prevent financial risks and improve investment efficiency," the ministry said in a statement on Wednesday.
The guidelines covered areas of investment decisions, financial management, cost control, dividend distribution and foreign exchange business.
In January, China issued regulatory rules on outbound investments by centrally-controlled state firms, in a bid to tighten controls on money moving out of the country and stabilize a faltering yuan.
Beijing's crackdown on showy overseas deals has drawn in corporate giants including property developer Dalian Wanda, HNA Group, Anbang Insurance [ANBANG.UL], Fosun and Zhejiang Luosen, which was behind the purchase of A.C. Milan football club.