THE country’s State-owned enterprises (SOEs) must strengthen their management of investments in sectors such as property, finance, overseas mergers and acquisitions, and projects in high-risk nations and areas, China’s State assets regulator said.

SOEs must strictly control the direction and scale of investments in non-core businesses, Weng Jieming, deputy director at the State-owned Assets Supervision and Administration Commission, said at an SOE meeting.

Taking on debt beyond their ability to repay in order to invest is strictly prohibited, financial news outlet Yicai quoted Weng as saying yesterday.

Regulators have stepped up crackdown on risky investments, indebtedness, and weak management among State companies as part of long-term financial reforms.

SOEs must not blindly invest in sectors that have a weak foundation or lack a competitive edge, Weng warned. (SD-Agencies)