China is ramping up oversight on outbound investments and Hong Kong share sale proceeds as it battles record capital outflows that have pressured the yuan, Bloomberg News reported Tuesday.
Sources said authorities now require China-based firms listing in Hong Kong to obtain a "no objection" nod from the State Administration of Foreign Exchange before using proceeds overseas, according to the report. Those failing to comply must repatriate funds to the mainland.
Regulators are also cracking down on fake overseas investments, suspecting some firms are disguising transactions to move money out, Bloomberg wrote.
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