China announces revised rules on outbound investment

China's top economic regulator unveiled revised rules on outbound investment on Thursday, a regulatory framework designed to better support the development of overseas investment while strengthening safeguards against risks.

The measures, announced by the National Development and Reform Commission, will take effect on Dec 1, replacing the rules on overseas investment by enterprises issued in 2017.

Reflecting the growing diversity of outbound investment, the measures reaffirm that investors include domestic enterprises, other organizations and individual residents, an official with the commission said in a statement.

Investors can continue to access overseas financial markets through existing channels, including the Qualified Domestic Institutional Investor program, Southbound Stock Connect and Cross-boundary Wealth Management Connect, the official said.

The measures also aim to bolster protection for Chinese investors facing discriminatory treatment abroad, including demands to hand over technology or data or dispose of equity and assets, the official said.

To that end, the rules improve reporting of major adverse developments and introduce an annual investment reporting system, helping investors and authorities coordinate efforts to safeguard overseas investments, the official added.

Meanwhile, the measures refine reporting requirements for overseas reinvestment and require advance reports on preparatory work for certain large investments or projects affecting China's diplomatic relations.

Keeping authorities informed will help investors and regulators jointly prevent and respond to overseas risks, the official added.