China to blacklist firms violating overseas investment rules

China to blacklist firms violating overseas investment rules

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China will blacklist companies that violate overseas investment rules as part of a wider crackdown on "irrational and unauthentic" foreign acquisitions, state-run newspaper China Daily said on Thursday, citing a senior official. The blacklist will be shared across government departments to allow regulators to oversee investment activities, China Daily said, citing Zhang Huanteng – a senior official with the National Development and Reform Commission, the body charged with approving outbound investments. Blacklisted companies will not be banned from making overseas investments but will receive punishment if they become "discreditable" to regulators, according to Zhang. China's State Council last month approved regulations targeting "irrational" overseas investments in the property, entertainment and sports sectors. According to the Financial Times, the move formally endorses a patchwork of restrictions that emerged last November.