Time to deleverage and slow overseas expansion

The Chinese government reiterated on Monday the country will continue to support the healthy development of its outbound investment after reports suggested it is guarding against money outflows disguised as foreign investment.

Officials from the National Development and Reform Commission, the Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange said the government is sticking to its opening-up policy and "going out" strategies, and facilitating investment abroad while guarding against foreign exchange risks.

For the last couple of years, there has been a steady flow of capital from China to overseas in direct commitment and portfolio investment.