China steps up quality checks on state-owned overseas assets
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BEIJING (Reuters) - China will step up monitoring of state-owned assets overseas, China's State Council said on Wednesday, amid rising concerns over the quality of investment made abroad.
State firms have been among the most active companies making big overseas investments, accounting for nearly two-thirds of China's $677 billion in outbound deals over the past 10 years, Thomson Reuters data show.
But in the rush to go global, companies weren't always diligent in their due diligence, and often overpaid to get deals done, industry sources say.
China is stepping up measures to stem capital outflows after its yuan currency skidded to more than eight-year lows, taking aim at outbound investments that have soared to a record high.
Officials from several government departments including the central bank and the foreign exchange regulator said on Monday that China will continue to encourage healthy development of outbound investment.
Turning to the introduction of value-added tax reform, the cabinet also said total tax savings for companies from the reform will exceed the government's target of 500 billion yuan ($72.64 billion) in 2016.
China expanded a VAT program to all companies on May 1 as it said it was looking to lower costs for companies already struggling with rising wages and weak sales growth.
(Reporting by Beijing monitoring desk and Elias Glenn; Editing by Simon Cameron-Moore)
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