Chinese Investors look like they will have difficulty transferring money for overseas investments

The Chinese Government says it is  planning  new restrictions on foreign investment deals, aimed at transactions by investors looking to move money out of China.

The Chinese Foreign Exchange Regulator says that the measures are not intended to affect genuine overseas investment.

There have been comments that the rules would be tightened for overseas investments of more than USD 1 Billion if the transactions are not part of the investors core business.   It has also been stated that state owned corporations would be banned from foreign real estate investment in excess of USD 1 Billion.

This all appears to be part of the Chinese Government objective to tighten money flow.

As the regulators will be examining all overseas investments, the  concern is that it will slow down the process of the approval of capital outflow. The effect is likely to be felt immediately.