An ongoing probe into several of China's largest overseas asset buyers is a healthy sign of political will and reflects how regulators are getting on top of things, an investor said Tuesday
Last week, high profile Chinese companies, including billionaire Wang Jianlin's Wanda Group, Anbang Insurance and Fosun were reportedly placed under scrutiny amid a government crackdown on money laundering ahead of the 19th party congress later this year.
Lender Industrial and Commercial Bank of China said a day later its checks of loans to companies that made overseas acquisitions is routine, Reuters reported.
"At this stage, it's still very much a fact-finding exercise. Of course, it's causing a lot of anxiety in the market because people don't know what will be found, but I think it is a healthy sign that the regulators are getting on top of things to make sure that the anxieties in the market are being managed," said Victor Chu, chairman and CEO of First Eastern Investment Group, a Hong Kong-based private equity and venture capital firm.
On Monday, a top-level meeting chaired by Chinese President Xi Jinping said the country will step up its monitoring of overseas investment, state news agency Xinhua reported.
As there has been rampant speculation over issues such as "Why so much money has been spent in such a short period of time? Where does the money come from," the probe would help clear things up, Chu told CNBC on the sidelines of World Economic Forum's annual June meeting in Dalian.