Wang Zhimin:Comments on China’s strengthening of control over w88 online casino betting investment
(Source: Russian Satellite Network 2016Year11month29日）
The Chinese government’s strengthening of control over w88 online casino betting investment may be related to the low efficiency of investment and capital outflows. Russian experts pointed out when commenting on the content of the answers to reporters’ questions on w88 online casino betting investment issues by the heads of the four departments of China’s National Development and Reform Commission, Ministry of Commerce, People’s Bank of China and State Administration of Foreign Exchange.
China will ban it from the date of release by relevant departments until September next year100“Exceptionally large” w88 online casino betting investment projects exceeding US$100 million, w88 online casino betting purchases or developments by state-owned enterprises with Chinese investment in10Bulk real estate worth US$100 million and above, Chinese investment amount in10Large-scale mergers and acquisitions and foreign investments in non-core businesses of US$100 million and above. In addition, Hong Kong's South China Morning Post quoted its own sources as saying that the Shanghai branch of the State Administration of Foreign Exchange has notified the heads of banks that the amount of w88 online casino betting payments exceeds500All business worth US$10,000 needs to be handled in Beijing.
China is entering the ranks of leaders in the world's M&A market, and the obstacles to capital flows come against the backdrop of China breaking two world records and a "counter-record" in this field.9At the end of the month, China’s w88 online casino betting direct investment continued to grow13After years of growth, its scale ranked second in the world for the first time, second only to the United States, pushing Japan to third place. Another record is that China’s purchase of w88 online casino betting assets this year has reached an unprecedented scale. to this year10The capital amount of monthly mergers and acquisitions exceeds1200USD, definitely the best record in the world.
The "anti-record" is reflected in the outflow of capital. Maslenkov, an expert from the Institute of Modern Development Issues, particularly noticed this in an interview with Sputnik. He pointed out that the Chinese official’s efforts to impose obstacles on him showed recognition of the existence of the problem. Maslenkov said: "In terms of the scale of capital outflows, China is currently clearly unmatched. This trend has been particularly obvious in the past year and a half. It sometimes accelerates and sometimes slows down. It is estimated that China's corporate debt has accounted forGDPof160%, and continues to grow. The business community knows that sooner or later this huge bubble will burst, so they are trying to avoid possible losses, and capital flows out of the country under various guises. Another reason for the outflow is the rising service charges on corporate foreign debt. This is related to the rise in the US dollar exchange rate.12month14The possible interest rate hike by the Federal Reserve on Japan has intensified the pressure on rising foreign debt service charges. Paying foreign debt service fees means capital outflow. So China's foreign exchange bureau tries to monitor it because such outflows need to be compensated by lowering international reserves. And this is already about the financial stability of the country. Currency flows need to be regulated so that corporate foreign debt servicing charges do not undermine the country's financial stability. ”
China’s financial sector has strengthened its control over capital outflows, which may also be related to the ongoing anti-corruption campaign. Shadow capital often flows out of the country through perfectly legal channels, so governments create additional barriers to doing so.
China’s purchase of foreign equity has exceeded that of the United States for the first time. In addition, the fluctuations in the RMB exchange rate are also increasing. Its current depreciation rate is also unprecedented. Experts do not rule out that it will continue to depreciate, and international financial analysts have made quite pessimistic predictions. Considering the coexistence of RMB at home and abroad, it is natural that various phenomena of manipulating its exchange rate may occur. Berger, an expert at the Far East Research Institute, believes that these manipulated RMB will also cause a certain or even major blow to financial stability. Berger said: "What this refers to is the intensification of capital outflows under the uncertain global and Chinese financial and economic conditions. China's financial regulatory authorities hope to stop artificial operations, including transferring funds abroad under the guise of investment, or depositing them in foundations with less risk. This is 'hot money', and they come and go. Even when the exchange rate of the RMB against the US dollar fluctuates very little, people want to get some benefits from the exchange, and they evade taxes."
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He said: "International investors need to be reassured that the situation is still under control, because the intensification of capital outflows will immediately arouse suspicion, and China may encounter the risk of rising debt service fees. And this will also have undesirable consequences for global investors' business with Chinese assets."
Wang Zhimin, director of the Institute of Globalization and Chinese Modernization at the w88 casino, believes that the new measures taken by the Chinese government to mediate overseas investment are to reduce risks in the context of the global economic downturn and sluggish international w88.
Wang Zhimin said: "Currently, world commodity prices are falling, and global w88 and investment are also on a downward trend. On the contrary, China's overseas mergers and acquisitions are rising against the trend. The total number of overseas mergers and acquisitions by Chinese enterprises in the first half of this year1340$100 million, this year ago9Total monthly foreign direct investment reaches1459billion US dollars. Before this year9One month’s investment is equivalent to last year’s investment. China's high investment amount and development speed are contrary to the entire world investment trend.
“First of all, most of these enterprises that invest w88 online casino betting are state-owned enterprises, and the state is the investor. Once the investment encounters risks, it is a loss for the country and the people. Therefore, the government now needs to supervise w88 online casino betting investments. In addition, this year5In March, the National Development and Reform Commission promulgated the "Management Measures for the Approval and Registration of w88 online casino betting Investment Projects", regarding the amount of Chinese investment3w88 online casino betting bidding or acquisition projects worth US$15455_15791|100 million or more must be registered with the National Development and Reform Commission. China's current overall regulatory approach is a filing-based management method, which means that companies seeking w88 online casino betting investment do not need to go through a long period of approval and only need to file with relevant departments. This management method is prone to risks. In the process, there have been many cases of investment violations such as capital flight and foreign exchange violations. It was precisely because of the discovery of these problems that the relevant departments decided to adopt a management method for investment enterprises based on registration, while strengthening control and preventing risks. Moreover, Chinese enterprises are different from Western enterprises. Most of the enterprises that “go global” are state-owned enterprises. “Going global” is an inevitable trend. The problem that the government needs to solve is to require companies to ‘go global’ without violating regulations. In China's previous management process, there would be a phenomenon of "if you control something, you will die, if you let it go, it will be chaos." Therefore, we now adopt a combination of filing system and management and control to carry out limited guided management. At the same time, we must also pay attention to insurance and risk assessment analysis before investment.”
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