Those investing overseas must consider risks

China has transformed from a capital importing country to a capital exporting one. This is an important characteristic of the new normal of the Chinese economy.

The latest statistics show China's current foreign exchange reserve is $3.05 trillion; nearly $1 trillion lower than its peak in June 2014. Investing abroad has been a growing trend for both enterprises and individuals.

Chinese enterprises have never been so passionate about investing in foreign capital markets, and they have become one of the largest sources of global investment. Individual investors have shown a similar desire for going out. Investments are made in overseas assets and children studying abroad, some wealthy individuals have also sought to move their fortunes overseas in a bid to evade the yuan's depreciation.