PRC focuses on continuous monitoring of offshore deals

Author: Karry Lai | Published: 29 Jan 2018

China will increase scrutiny of outbound investments as of March 2018 with more emphasis placed on post-approval activities of companies. But the increased workload on the National Development and Reform Commission (NDRC), the regulator in charge of the new framework, is already a concern for market participants.

Regulators including the NDRC, the Ministry of Commerce (MoC) and the People’s Bank of China jointly issued a set new rules for outbound investment on December 18. While the approval process for Chinese offshore investments will be streamlined, with the NDRC handling all applications, continuous monitoring of the investment process is key to the new system. How the NDRC will handle the extra workload on approvals and post-approval monitoring is already called into question, as approval time for outbound investments may take longer.

Post-approval emphasis

Under the new framework, investment activities of overseas subsidiaries set up by domestic companies will be scrutinised....



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