China To Prohibit Overseas Investments In The Gambling IndustryNew Rules Released This Month To Limit Capital Flows |
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China doesn’t want its companies to invest in overseas casino gambling industries.
According to a report from CNBC, the country has put forth new rules that ban investments in anything that it thinks jeopardizes national security, as well as the gambling and sex industries. Beijing also wants to limit overseas investments made in industries such as hotels, film and sports.
Industries that China sees as helping its technological capabilities are still open for domestic firms to invest in, however. The report cited Dealogic research that found that after Beijing loosened foreign investment rules several years ago Chinese companies boosted their overseas spending to $200 billion in 2016. The party is over.
Chinese companies were expecting the new rules, as overseas investments through the first six months of this year fell some 40 percent.
The new regulations come from the Office of the State Council and were released Aug. 18.
The only place in China were gambling is legal is in the special administrative region of Macau, a former Portuguese colony. Some of the largest U.S. casino operators have casinos there, which grew the gaming market to record heights. After a downturn at the hands of Beijing, which put restrictions the money flow to high rollers, the market has made a comeback over the past year.
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