Chinese companies have received another warning over their enthusiasm for foreign buyouts with the head of China`s foreign exchange regulator calling on them to invest "carefully", according to an official state newspaper on Monday.
"Some of this outbound investment was not in line with our own policies and had no real gain for China," he contended.
Pan`s comments come shortly after PBOC Governor Zhou Xiaochuan, delivered remarks in a similar vein at this month`s National People`s Congress, accusing some domestic investors of expending capital overseas "blindly" and in a rushed fashion.
"Overseas mergers and acquisitions can sometimes resemble a rose with thorns, you must be careful and you must do your due diligence," Pan Gongsheng, the head of the State Administration of Foreign Exchange (SAFE) and a vice governor of the People`s Bank of China (PBOC), told Shanghai Securities News, according to news agency Reuters.
"These deals can be like clasping a handful of sand at the beach, it looks like you`ve got it in your grasp but at the last moment it slips through your fingers," he added.
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