China tightens policies on money outflow

The Chinese government has been enforcing various tightening policies on money outflow since the end of 2016, trying to restrain money from leaving the country.

The demand for Foreign Direct Investments (FDI) is still growing, but it may slow down because of multiple tightening measures imposed by the government. New policies are suggested by the combination of economic and political reasons and it means that oversea investments are still possible but will be somewhat limited.

For European countries, it is felt a state of political uncertainty after Brexit. From a business point of view, the Asian market will probably once again become more attractive to many global investors.

On the other hand, in China, capable and qualified Chinese enterprises will be supported by any kinds of investments, following by the attention of some potential risks associated to sectors as real estates, sports clubs and entertainment.

For foreign counterparties involved in China outbound transactions, it will be crucial to be kept updated with the regulatory developments, regarding also the ambitious “One Belt One Road” plan that aims to connect Chinese and European market.

D`Andrea & Partners will keep you updated on the regulatory framework of inbound and outbound investments; shall you have any comments or inquires about this topic, please email us: