China tells firms not to rush into overseas buyouts

China has told its state-owned enterprises not to rush into overseas mergers and acquisitions, state media reported today, in a sign of increasing caution in the face of the global financial meltdown.  

   
"Hold your cash," Li Rongrong, head of the state-owned Assets Supervision and Administration Commission -- which manages China's state-owned enterprises -- told executives, the official China Daily reported today.     

"Don't rush. There will be plenty of opportunities in the future," Li said at an emergency briefing, according to the newspaper.     

His comments come as China's Premier Wen Jiabao warned the impact of the global financial crisis on China was "worse than expected," in an indication of increasing concern in Beijing.     

China initially said the crisis would not cause too much harm to its economy, but in recent days the signals from Beijing have changed markedly.     

On Sunday, the government announced a spending package worth $586 billion aimed at lifting economic growth.