Chinese corporates' outbound investments......>

CHINA: Chinese corporates' outbound investments are likely to rise in the long

term in line with the government's support of projects tied to the "One Belt,

One Road" pan-Asian infrastructure initiative, Fitch Ratings said Wednesday.

Regulations on foreign acquisitions related to the property, hospitality, sports

and entertainment sectors would "remain relatively tight" in 2018, with regular

uncertainty in the U.S. adding to deal execution risk for Chinese corporates,

Fitch said. However, it added, "these challenges will not derail the

globalization strategies of most Chinese corporates, which are still generally

at an early stage." Outbound M&A by Chinese corporates fell 42% on an annualized

basis in the first nine months of this year due to tightened regulations, Fitch

said. The Chinese government is more likely to provide support for acquisitions

of "high-quality overseas assets" that help Chinese companies obtain

technological know-how and expand distribution networks, Fitch said. Overseas

acquisitions are likely to be focused in technology and consumption-driven

sectors, such as media and telecommunications, healthcare, consumer goods and

high-end manufacturing, it said.