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Sentinel 1973 - On the Heightened Restrictions for China Foreign Investment

AUCKLAND, NEW ZEALAND / ACCESSWIRE / August 29, 2017 / With the annual trade talks between the United States and China mutually ending before it even started, China's financial regulators have further tightened controls on outbound investments. A discussion with the world's CFD broker market leader, Sentinel 1973, shows how the restriction will affect major industries where Chinese investors have been present. The new constraint suggests a deepening rift between the two countries and will affect everything from automotive to real estate.

While the U.S. made demands on lifting ownership caps for foreign firms in China and gaining access to China's financial services markets, China implemented a rule that will require state groups to strictly assess the political risks and financial viability of overseas investments. They will also mandate stringent auditing mechanisms and require better documentation of foreign currency transactions. The experts at Sentinel 1973 shared that this comes in light of the news that China's predicted foreign investments is upwards of $167 trillion and dabbles in everything from Hollywood films to British football clubs. In 2016, the country's outbound commercial real estate investment alone had increased by 53% in one year. China's Finance Ministry made an announcement stating that the new rules will "strengthen financial management of overseas investment of state-owned enterprises, prevent financial risks, and improve investment efficiency".

There are many reasons which contributed to China's decision: Its overseas investments have soared drastically and were originally initiated with high hopes but were instead met with weak profitability and low returns (ROI). Additionally, with domestic growth and currency flowing into the country coming to a standstill, it only makes sense to ease restrictions on foreign companies investing in China while constricting the opposite. For example, certain foreign investments in one of China's many free-trade zones will no longer require a joint venture with Chinese partners, thereby increasing the chances of foreign investors intervening. The State-owned Assets Supervision and Administration Commission's choice to step up their control on outbound investments also includes a list of non-disclosed financial projects and industries that firms would not be allowed to invest in at all. The impact of this decision is already affecting many such as Vancouver's declining real estate sales; the city's largest acquisition last year was $1 billion by Beijing-based Anbang Insurance Group. With everything in place, China's goal continues to be promoting a more orderly development of outbound, while increasing their inbound investments.

At the forefront of investment trading for over 44 years, Sentinel 1973 has been the leading broker market of Contract for Differences (CFDs) on stocks, indexes, currencies, and commodities. Specializing in the trading of financial products in organized stock markets and Over the Counter (OTC), they offer their customers, both retail and institutional, a technologically advanced trading platform to achieve successful investments. With over 200 financial instruments and 10 platforms, customers can be found in 180 countries scattered throughout Africa, Europe, Latin America, Asia, and the Middle East.

Sentinel 1973 - World Leading Trading Broker Chosen by Customers: http://sentinel1973news.com

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SOURCE: Sentinel 1973


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