SOEs told to beef up scrutiny

Ministry's new guideline tightens up requirements on a slew of measures

China has tightened scrutiny of overseas investment by State-owned enterprises, ordering them to improve investment decision-making, strengthen internal auditing and carry out responsible due diligence, according to a guideline issued by the Ministry of Finance on Wednesday.

The SOEs are required to set up proper decision-making systems and to carry out financial feasibility studies on overseas projects before making any investment decision. They are also ordered to send on-site inspection and auditing teams to evaluate overseas projects that involve major losses and risks, the guideline said.