Chinese shopping spree is over
The WSJ reports that Chinese directives to cut aggressive overseas expansion and trim balance sheets goes right to Xin Jinping.
"-China's government reined in one of its brashest conglomerates with the approval of President Xi Jinping, according to people with knowledge of the action-a mark that the broader government clampdown on large private companies comes right from the top of China's leadership," the WSJ reports.
Chinese leadership directed its top agencies to look closer at foreign acquisitions, including loans.
The reason is that China is beginning to fear the clout of its largest companies and doesn't want them to rival state-owned enterprises.
The clampdown has major implications for the yuan, which is held down by overseas investment.
