China implements NEW law to Restrict Foreign Investment!
The new law passed, places new restrictions on foreign purchases of Chinese Companies sparking off concerns by US and EU groups. This law requires a National Security Investigation as well as monopoly checks when foreign companies seek to merge or take-over Chinese enterprises in certain sectors. This law will take effect on 1st August 2008.
China is concerned over the continued inflows of Foreign funds which already makes the growing asset bubble worse. Currently, Stocks, Real Estate and Other Asset values have risen sharply propelling fears of a coming crash.
Experts believe that the law reflects an increasingly wealthy China: hence a decreasing need for foreign funds as before.
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