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 8-1/2 year low against the dollar. The latest addition to China's soccer stable is set to be Italy's AC Milan. Reuters reported last week that a consortium's 740 million euro ($784 million) 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 buyers including Amer International and CITIC Securities Co Ltd were readying a 246 million pound ($306 million) bid for English Premier League outfit Southampton.