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Laws, Policies, & Guidelines

Measures for the Supervision and Administration of Overseas Investment by Central Enterprises

Scope of Application

Measures for the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) and developers and contractors that are central state-owned enterprises (CSOEs).


Offers specific measures to bolster SASAC's supervision, management, and promotion of overseas activities by CSOEs.

General Key Points

SASAC should:

  • Improve legal compliance, financial supervision, assessment and allocation, audit inspections, and risk detection. 


CSOEs should:

  • Ensure investments suit their own capital strength, financing ability, industry experience, management level, and ability to manage risks.
  • Comply with the laws, regulations, rules, and cultural customs of China and host countries.
  • Develop an overseas investment management system with the following elements:
    • Basic principles and decision-making procedures to follow.
    • Departments and decision-making bodies with relevant responsibilities defined by CSOEs.
    • A negative list system for projects; an information management system.
    • A risk management and control system.
    • A system for investment projects that have been completed, suspended, terminated, or withdrawn.
    • A post-project evaluation system.
    • An accountability system for investment violations; and an authorization, supervision, and management system for activities of the affiliated companies.
Key Points on Stakeholder Engagement

CSOEs should:

  • Establish a pre-investment decision-making risk assessment system.
    • Entrust an independent third-party consulting agency to conduct a comprehensive assessment of the political, economic, social, cultural, market, legal, policy, and other risks of host countries for major projects.
  • Strengthen public relations with the government, media, companies, communities, and other sectors of society in host countries. 
  • Actively fulfill their social responsibilities. 
  • Focus on cross-border cultural integration.
  • Submit an annual report covering the progress of overseas investment projects, their impacts, and suggestions to address major problems to SASAC. 
Key Points on Environmental and Social Impact Assessment

CSOEs should:

  • Establish and improve overseas investment management systems to clarify investment decision-making procedures; regulate behavior; and strengthen risk monitoring, management, and control.
  • Utilize the professional services of domestic and foreign intermediaries to conduct in-depth feasibility studies and improve decision-making.
    • Carry out the necessary due diligence and asset appraisal or valuation procedures for equity investment projects.
  • Report to SASAC for an investor review for overseas investment projects listed in the special supervision category of the negative list. Submit the following materials:
    • A report on the project investment.
    • Relevant decision-making documents of their company.
    • The project feasibility study report.
    • The project financing plan.
    • The risk prevention and control report.
  • Establish and implement an evaluation and accountability system for overseas investment projects. 


SASAC should:

  • Publish a negative list of overseas investment projects of central SOEs.
  • Determine which projects are prohibited or require special supervision.
  • Randomly supervise and inspect the decision-making, implementation, and impacts of major projects.


SASAC and CSOEs should jointly:

  • Establish an investment information system covering monitoring, analysis, and management of projects and their risks in real time.
Applies to
January 2017
State-owned Assets Supervision and Administration Commission of the State Council (SASAC)
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