US$15b of Chinese energy deals cancelled

Hong Kong

CHINA's infrastructure investors have had a tough two weeks, with plugs being pulled on at least US$15 billion of potential deals in nuclear power and electricity distribution.

Britain and Australia refused to sign off on investments where state-owned Chinese companies were ready to provide much- needed funding. In both cases, the long-term utility programs were halted in the later stages, stunning participants.

"As China's diplomatic policies become more and more assertive, there's a trend that these countries are gradually enhancing their vetting on Chinese investment," said Tao Jingzhou, a managing partner at Dechert LLP in Beijing. "This is an attitude change."

Chinese firms in the midst of a record overseas spending spree are buying foreign utilities at the fastest pace in eight years, according to data compiled by Bloomberg. Infrastructure deals, especially, are set to come under increased scrutiny by incoming governments wary of giving China access to their nations…