SASAC to tighten overseas investment
Updated: 2012-04-11 18:12
(chinadaily.com.cn)
|
|||||||||
China's centrally-administrated stated-owned enterprises will be refrained from making overseas investment in areas which are not their core businesses, according to a regulation by the nation's state assets watchdog.
The regulation, drafted by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), aims to regulate and supervise central firms' overseas investment and will take effect as of May 1.
If central firms need to invest in non-core business overseas, they need to get approval from the SASAC first, the regulation said. The move is to avoid risks.
Bai Ming, a research fellow with the National Institute of the Ministry of Commerce, told the Economic Information Daily that what needs special attention is central firms' speculation overseas, as some projects, albeit with high profits, are often borne with huge risks.
China's central enterprises has stepped up overseas investment in recent years, but without a complete regulatory system or experienced talents, some projects end up with huge loss.
China Aluminum Inc, or Chinalco, ended with a deficit of as much as 340 million yuan ($53.9 million) due to an aborted bauxite mining project in Australia in 2011. In the same year, China Railway Construction Co suffered a profit loss of 4.15 billion yuan in a light rail project in Saudi Arabia.
Relief reaches isolated village
Rainfall poses new threats to quake-hit region
Funerals begin for Boston bombing victims
Quake takeaway from China's Air Force
Obama celebrates young inventors at science fair
Earth Day marked around the world
Volunteer team helping students find sense of normalcy
Ethnic groups quick to join rescue efforts
Most Viewed
Editor's Picks
![]()
|
![]()
|
![]()
|
![]()
|
![]()
|
![]()
|
Today's Top News
Health new priority for quake zone
Xi meets US top military officer
Japan's boats driven out of Diaoyu
China mulls online shopping legislation
Bird flu death toll rises to 22
Putin appoints new ambassador to China
Japanese ships blocked from Diaoyu Islands
Inspired by Guan, more Chinese pick up golf
US Weekly
![]()
|
![]()
|