The Chinese Government has recently published its regulatory policies for overseas direct investment. The policies come as the Chinese Government looks to tighten the outbound flow of capital investment in certain areas whilst encouraging overseas investment in others.

Importantly, the policy measures state that overseas investment is encouraged where such investment would supplement China’s shortage of energy and resources including in oil, gas and minerals.

Conversely, overseas investment in real-estate is restricted as is the establishment of generalist overseas investment funds not linked to a planned or existing project.