Curbs on investing abroad loosened

China's foreign exchange regulator yesterday loosened curbs on overseas direct investment in a bid to facilitate qualified local companies to invest and expand abroad.

The State Administration of Foreign Exchange (SAFE) said it would expand the sources of capital Chinese companies can use to finance outbound investment and permit funds to be transferred overseas without prior approval, according to two statements on the regulator's website yesterday. The new regulations will take effect from Aug 1.

"The rules are intended to give companies more room to develop overseas and reduce their pain in adjusting growth and models," Liu Guangxi, a top official at SAFE's capital-account department said at a press briefing in Beijing.