China to support capable businesses to invest overseas: regulator

BEIJING - China's foreign exchange regulator will support "capable and qualified" businesses to invest overseas this year to advance cross-border investment.

The State Administration of Foreign Exchange (SAFE) said at a conference it will steadily push forward capital account convertibility and protect the interests of foreign investment.

The statement came as Chinese authorities tightened regulations on overseas investment and advised companies to make investment decisions more carefully.

SAFE will encourage innovation in foreign trade and expand pilots of foreign exchange management in free trade zones.

A more open, more competitive foreign exchange market will be fostered and risk management of exchange rates improved to limit effect of external shocks.

To win the battle against major financial risks, the regulator said it will prevent irregularities in the foreign exchange market.