The Chinese 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, reports the AP.
A document released Friday by the State Council, China’s Cabinet, was 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.
One of those conglomerates, Wanda Group, became the world’s biggest cinema operator with its purchase of U.S. chain AMC. It added rival Carmike Cinemas Inc. last year in a $1.2 billion deal.
The Cabinet document limits overseas investments in areas such as hotels, cinemas, the entertainment industry, real estate and sports clubs. It also bans investments in gambling enterprises outright.
