China warns soccer investors to ‘play by the rules’ on capital outflows
The latest addition to China’s soccer stable is set to be Italy’s AC Milan, a €740m deal for which the consortium struggled to get Beijing’s approval
Beijing — Private Chinese investors are welcome to help develop the sports industry but must follow the country’s rules on moving capital overseas, the sports ministry said on Monday, following a splurge on foreign soccer clubs by local buyers. Companies from China have spent heavily on foreign clubs in recent years as President Xi Jinping has called for it to develop a world-class soccer industry. But while it says it supports its companies expanding overseas, Beijing has also been cracking down on anything it views as "illegitimate" capital outflows. High outflows were a contributory factor behind last year’s depreciation of the yuan currency to an eight -and-a-half year low against the dollar. The latest addition to China’s soccer stable is set to be Italy’s AC Milan. Reports said last week a consortium’s €740m purchase of the Serie A club was to be finalised on March 3 after struggling to get approval from Beijing. Also last week, a person with knowledge of plans said Chinese bu...
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