central SOE overseas investment management measures released

State-Owned Assets Supervision and Administrative Commission (SASAC) published ‘Management measures for supervising central SOE overseas investment’, replacing the 2012 version.


The document stipulates

  • general provisions
    • SASAC will strengthen its capital management role by
      • controlling investment direction
      • optimising investment layout
      • regulating capital and its safety
      • increasing return on investment
    • central SOE overseas investment should
      • be strategic—integrate domestic and overseas strategies, increasing innovation and international competitiveness
      • adhere to local legislation, regulations and customs
      • match capabilities—the investment scale should match companies’ financing, risk management and experience
      • reasonable ROI—strengthen investment argumentation and management to increase ROI
  • investment supervision
    • setting up a negative list management system; central SOEs
      • are restricted from investing in items listed in the ‘prohibited catalogue’
      • should submit applications for SASAC review to invest into the ‘special supervision’ list
  • pre-investment management
    • central SOEs should
      • submit application for SASAC review if they want to invest in ‘special supervision’ items
      • not invest in items outside their major business; excepting when under SASAC’s supervision
  • investment management
    • central SOEs
      • are responsible for analysing and tracking investment environment
      • should submit quarterly reports to SASAC
  • post-investment management
    • submit annual reports
    • draft evaluation reports
    • all-around auditing
  • strengthening risk management
    • central SOEs to introduce state-owned investment operation companies and private investment agencies, local investors, international investment agencies that understand investment risk control and PR coordination
    • review third-party commissioned reports on local politics, economy, society, culture, market and legislation or policies for key overseas investment projects
    • strengthen government agencies’ connection and coordination with overseas embassies and consulates
    • make full use of insurance
    • set up win-win opportunities by
      • enhancing PR relations with local government, media, enterprises, communities
      • fulfilling CSR responsibilities
      • integrating with local culture and creating better investment environments
  • accountability
  • supplementary provisions