China has stepped up financial management of overseas investments made by state-owned enterprises (SOEs) in efforts to improve returns and control risks, the Ministry of Finance said last Wednesday. A guideline that took effect last Tuesday will standardize the financial management of SOEs throughout the investment process, and tackle key issues including poor project feasibility and lack of risk management, the ministry said in an online statement.
JUMORE Reviews
China's SOEs have been at the forefront of overseas investment. As China pushes the Belt and Road Initiative and encourages companies to go abroad, overseas investments by SOEs are becoming diversified and higher-end and exert considerable influence on the country’s outward-looking economy. As such, potential risk factors should be taken into account and proper financial management be conducted throughout the investment process to contain irrational outbound investment.
Comments
Post a Comment