The regulatory challenges faced by PRC
buyers of overseas assets have long been blamed for the failure
of Chinese-led transactions. But strict domestic regulations
may be a big part of the problem.
By September this year Chinese companies
had carried out a total of 521 outbound transactions with a
combined value of $67.4 billion, up from $54.4 billion in 2015,
according to the latest figures released by
China’s Ministry of Commerce (Mofcom).
But lawyers in China point out that the
tightened control of capital outflow at home has increasingly
led foreign sellers to question the ability of PRC buyers of
overseas assets to settle a transaction abroad.
"The PRC regulatory regime continues to
create deal uncertainty for PRC buyers of foreign assets," said
a lawyer at an international law firm who specialises in China
Chinese investors spent a total of RMB 882.8 billion ($134.2