Body bars SOEs from risky investments

China's State-owned enterprises should avoid irrational investments and trade financing activities for achieving scale, said the head of the country's SOE regulatory body on Monday.

From now on, SOEs are "strictly prohibited" from such moves, said Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission.

SOEs' trade financing activities for scaling up their business volume may pose risks in terms of credit defaults, business fraud and loss of goods, he said.