China greases the wheels of outbound M&A

The Chinese government further reduces red-tape by easing restrictions on outbound investments by local companies.

Chinese companies are set to become more competitive globally in the merger and acquisition market after the government’s decision to ease restrictions on outbound investments.

Starting from May 8, Chinese firms planning to invest less than $1 billion in an overseas company will no longer need to seek approval from authorities but only need register with the National Development and Reform Commission NDRC, according to a statement by the NDRC.

Deals of above $1 billion will still need the approval of the NDRC, while those above $2 billion will require the approval of the State Council.

Currently, overseas resource-related investments above...

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