Last Friday, China announced that it would restrict domestic companies from making overseas investments in sectors such as real estate, hotels, entertainment, and sports clubs. The notice criticized “irrational” investment trends by Chinese companies while indicating support for investments in natural resources and along the “One Belt, One Road” corridors. The effort is aimed at managing the overall net outflow of capital from China, as well as the composition of the outflow in terms of sectors and countries. China has a very high savings rate and diminishing investment opportunities at home because it has built up ... (full story)