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Report: China lays out overseas investment guidelines

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Report: China lays out overseas investment guidelines

The finance ministry of China issued guidelines on overseas investment of state-owned companies, amid concerns that their rising purchases abroad have met with low returns and weak profitability, Reuters reported, citing the ministry.

The guidelines, which take effect in August, seek to improve overseas investment decisions, financial management of such investments and cost control while also covering dividend distribution and the foreign exchange business.

The move will help prevent financial risks and improve investment efficiency, the ministry said in a statement Aug. 1, according to Reuters.