Official statistics showed that Chinese enterprises conducted 438 overseas merger and acquisition transactions in 2016, with a total volume of US$215.8 billion – mostly funded by bank loans. Since November, 2016, however, the State Administration of Foreign Exchange required that any overseas M&A transactions larger than US$5 million dollars have to be approved first – the previous threshold was US$50 million. What’s more, favorite investment areas for Chinese enterprises including the film and entertainment industry, football clubs and real estate programs were virtually halted in early 2017. From January to May 2017, Chinese enterprises have invested in 145 countries and regions with a volume of nearly US$35 billion, a 53 percent decrease year on year. It is increasingly difficult to make a profit through overseas M&A and some enterprises are allegedly transferring assets overseas under the guise of M&A, a method which government agencies are struggling to oversee and regulate.