Chinese Government Clamping Down On Domestic Investments, Including Sports
China's government is "moving to curb domestic companies' investments abroad in property, sports, entertainment and other fields, following a series of high-profile, multibillion-dollar acquisitions by Chinese firms," according to the AP. This marks the "latest move by regulators to tap the brakes on a string of foreign acquisitions, citing concerns that the companies involved may be taking on too much debt" (AP, 8/18). CNN MONEY's Sherisse Pham noted after a "record year of overseas spending" in '16, Chinese investment in other countries plunged 46% "in the first half of this year" (MONEY.CNN.com, 8/18). N.Y.-based data firm Rhodium Group said that the new rules could "have an outsize impact on investment in the U.S., which was the largest recipient of China's foreign direct investment flows last year," taking in $46B, or triple the previous year (WSJ.com, 8/18). In London, Richard Partington noted the announcement of restrictions "follows a buying spree around the globe during which Chinese firms and business tycoons have taken control of assets" including U.S. film producer Legendary Entertainment, as well as EPL club Southampton and Championship club Aston Villa (GUARDIAN, 8/18). BLOOMBERG NEWS reported while the clampdown has been "building for months," the announcement is the "clearest sign yet that government is serious about reversing the flood of Chinese money" that has poured into an estimated 29 soccer clubs in the "past four years" (BLOOMBERG NEWS, 8/18).