China's securities regulator fined three Hong Kong brokerages over $330 million for unauthorized overseas stock access for mainland investors. This move aims to enforce capital controls through legal channels, not discourage outbound investment, as investors were given two years to unwind positions.
Foreign Portfolio Investors (FPIs) withdrew Rs 49,340 crore from Indian equities in June, pushing total outflows for 2026 to Rs 2.7 lakh crore. This was driven by global risk aversion, US yields, and valuation concerns, though a US-Iran peace deal later eased selling. FPIs, however, invested in Indian debt.
RBI's updated NBFC rules, effective July 1, 2026, have tightened definitions of public funds and overseas investments, preventing Tata Sons from exiting regulatory oversight and avoiding a mandatory public listing. The holding company's strategy to deregister as a core investment company is now invalidated.
China has implemented new national security regulations, effective Wednesday, allowing broader review of overseas investments and transfers impacting its strategic interests, especially in AI and semiconductors. This move, amid tech competition with the US, aims to protect Chinese technological capabilities but raises concerns for Chinese companies' global expansion and foreign partners' access to Chinese expertise.
China has enacted a new law, dubbed the 2026 regulation on outbound direct investment (ODI), to probe and retaliate against foreign trade barriers and sanctions targeting its industries. The law requires Chinese investors to cooperate with authorities during overseas investigations.
India's Finance Minister Nirmala Sitharaman announced new measures to attract foreign capital, including expanded access to government securities and tax exemptions. These steps aim to bolster forex reserves and support the rupee amidst geopolitical crises and rising import costs for oil and fertilizers.
Meta is unwinding its $2 billion acquisition of AI startup Manus following an order from Chinese regulators. The company has halted data sharing and operational ties, a move driven by China's tightening control over technology amid US competition.
The Financial Supervisory Service (FSS) urged securities firms to strengthen internal controls to prevent investor harm from irresponsible sales practices amid increased market volatility. The FSS emphasized investor protection, particularly regarding foreign exchange risks in overseas investment brokerage and advertising.
China's State Council has introduced new regulations, effective July 1, to enhance control over overseas investments involving Chinese investors, technology, data, and national security. The rules aim to prevent strategic assets from being transferred to foreign entities and provide a legal basis for China to nullify completed overseas deals, impacting tech and AI sectors.
Indian companies significantly increased overseas direct investments in April, reaching $3.37 billion, more than double the previous month's $1.61 billion. Equity investments led the surge, with Coforge being the largest investor. Investments spanned various sectors and regions.
