China has taken another step in its efforts to increase investment oversight and stem the flow of capital out of the country. On Aug. 18, China's State Council issued a notice offering specific guidance for overseas investment. The memo specified that risky or spurious investments, such as in real estate, hotels, entertainment and sport clubs, will be restricted and must receive regulatory approval. But it also stipulated that investment and infrastructure projects promoting the Belt and Road Initiative would receive state backing, and that the state would continue to encourage investment in the advanced manufacturing, agricultural and service sectors....
