China takes harsher tone against big dealmakers, alleging ‘asset transfer’
Overseas investments by nation’s leading companies were not aimed at making profit, state media quotes researcher as saying
China has stepped up criticism of the string of overseas deals made by some of the country’s biggest companies, amid wider concern in Beijing over capital flight.
Such deals were “not real ... they are de facto asset transfers”, state-run CCTV quoted a researcher with China’s leading think-tank as saying on Tuesday night.
“They were not meant to invest money [for profit] but to move assets abroad,” said Yin Zhongli , who works for the Chinese Academy of Social Sciences, which is affiliated with the State Council.
“Asset transfer” is a phrase that within China implies national wealth loss and can often lead to an investigation.
The comments come as the nation’s banking regulator has focused scrutiny of China’s prominent global dealmakers, including Anbang Insurance and the Dalian Wanda Group, a conglomerate that has spent more than US$5 billion in recent years on a buying spree that included American cinema chains and the Hollywood movie studio Legendary Entertainment.
