CHINA plans to tighten controls on Chinese companies looking to invest abroad, in an effort to slow a surge of capital fleeing offshore, The Wall Street Journal reported Friday.

    The Cabinet will soon announce a series of measures that would subject many overseas deals to stricter regulatory oversight, it said.

    China’s Commerce Ministry and the top economic planning agency will impose “strict controls” over any foreign acquisition valued at US$10 billion or more and on State-owned companies intending to build or invest in properties overseas in a deal valued at US$1 billion or more, the Journal said.

    They will also impose stricter control on Chinese companies seeking to invest US$1 billion or more in overseas entities that are not related to their core businesses, the newspaper said.

    Other overseas transactions affected will be investments in overseas-listed companies that are less than 10 percent of those firms’ total equity, direct investments made by limited partnerships and Chinese capital trying to participate in the delisting of overseas-listed Chinese companies, the Journal said.

    (SD-Agencies)