China's recent regulations on overseas investment are aimed at reining in overseas acquisitions and curbing illicit capital outflows. Let's find out what's OK, what's maybe and what's strictly no-no.

China's State Council issued guidelines on overseas investment last August to rein in overseas acquisitions. The guideline stipulate on three categories of outbound investment: encouraged, limited and forbidden. Any deal that threatens China's national interests or security is forbidden. Investments in property, hotels, entertainment, motion picture studios and sports clubs falls into the limited category.

National Development and Reform Commission in December issued new rules for overseas investment by private companies. The new rules urged private companies to improve risk controls, set up contingency plans, and strengthen safety measures in overseas investments. 

A regulation issued on January 25th stipulated that outbound investment projects of over 300 million U.S. dollars or those in "sensitive countries and regions" or "sensitive industries" will be the focus of regulatory supervision. The state planner published an updated version of its "sensitive" list on overseas investment on Sunday. The new list includes weapon development, news media, cross-border water resources sector and the 6 limited industries outlined in last August's guidelines. The new list will come into effect on March 1st.