New Administrative Measures for Outbound Investment Issued; Reporting Regime for Major Adverse Incidents Improved to Better Safeguard the Development and Security of Outbound InvestmentThe State ...

On October 22, the National Development and Reform Commission (NDRC) released the Administrative Measures for Outbound Investment (hereinafter referred to as the New Measures), which provides stronger institutional guarantees for the development and security of outbound investment. The New Measures shall come into force on December 1, 2026, replacing and repealing the Measures for the Administration of Overseas Investment by Enterprises issued in 2017 (hereinafter referred to as the 2017 Measures)国家发展和.... An NDRC official noted that the New Measures maintain continuity with the existing regime. Investors may continue to make investments in overseas financial markets via channels including QDII, the Hong Kong Stock Connect and the Cross-border Wealth Management Connect.

Why revise and introduce the New Measures?

The official explained that since the 2017 Measures took effect, China’s outbound investment has achieved robust growth under the high-quality Belt and Road Initiative. Annual outbound investment flows rose from USD 158.3 billion in 2017 to USD 213.6 billion in 2025, while the stock of outbound investment jumped from USD 1.8 trillion to USD 3.4 trillion.

Meanwhile, the external environment has undergone profound and complex changes. Unilateralism and protectionism are on the rise, regional conflicts and turbulence occur frequently, and outbound investment faces mounting risks. To adapt to the new landscape, boost high-quality development of outbound investment, protect the legitimate rights and interests of investors and their overseas projects, and safeguard national sovereignty, security and development interests, the NDRC revised the 2017 Measures in accordance with the law to formulate the New Measures

How will the New Measures better protect outbound investment rights and interests?

The official stated that the 2017 Measures established a reporting system for major adverse incidents to protect personnel and assets involved in outbound investment. In recent years, a small number of economies have adopted discriminatory practices, compelling Chinese investors to hand over technology and data, or dispose of equity and assets, which seriously harms Chinese parties’ legitimate interests.

To address such problems, the New Measures implement the provisions on outbound investment protection set out in the Regulations of the State Council on Outbound Investment. It improves the reporting system for major adverse incidents and introduces an annual information reporting system for outbound investment, covering the above scenarios. Investors reporting such incidents to regulatory authorities will help form joint efforts to safeguard outbound investment rights and interests国家发展和....

How will the New Measures strengthen risk prevention and response for overseas projects?

The official pointed out that the 2017 Measures put in place reporting requirements for large non-sensitive projects (i.e., overseas reinvestment) and project completion reports to guard against overseas risks. In recent years, political unrest and frequent policy shifts in some economies have pushed up political and security risks. Some investors underestimated overseas risks and failed to respond effectively, resulting in heavy losses.

Targeting these challenges, the New Measures enforces the monitoring, early warning and risk prevention clauses stipulated in the Regulations of the State Council on Outbound Investment. It refines the reporting rules for overseas reinvestment, and adds a pre-implementation progress reporting requirement for a small number of large-scale projects that bear on China’s diplomatic relations with host countries. Timely submission of relevant information by investors will enable regulators and market players to jointly forestall and defuse overseas risks

Source: Shanghai Securities News