INVESTMENT AFTER $225B IN 2016 ▸ China struck $US225 billion (1.6萬億元⼈人⺠民幣) in deals to acquire companies abroad last year, a record-breaking number that signalled to the world that Chinese business leaders were hot to haggle. ▸ Now China, with a worried eye on the money leaving its borders, is telling some of its companies to cool it down.
Beijing was changing course, China's commerce minister castigated what he called "blind and irrational investment". At a news briefing during the annual meeting of China's congress, Zhong Shan, the minister, said officials planned to intensify supervision of what he called a small number of companies. ▸ "Some enterprises have already paid the price," said Zhong, a protege of President Xi Jinping. "Some even have had a negative impact on our national image."
central banker, also questioned the wisdom of some recent Chinese overseas deals. ▸ "Some are not in line with our requirements and policies for overseas investment, such as in sports, entertainment and clubs," he said. ▸ "This didn't bring much benefit to China and caused some complaints overseas."
Silvers, a long-time investment banker in Shanghai. "The answer to me is, in some cases, they seem to be." ▸ A series of Chinese deals have come apart in recent months – though it is not always clear whether Beijing has stepped in, or whether buyers themselves suddenly decided they were making a big mistake. ▸ Summary : China government is hitting the brakes on the sometimes chaotic rush overseas by deep-pocketed Chinese companies with a reputation for having more money than deal-making aptitude.