Chinese companies changing direction and expanding rapidly overseas should “raise red flags” to global investors, one asset manager at a China-based investment firm told CNBC.

Speaking specifically about conglomerate Dalian Wanda Group, Lei Jing, a fixed income chief investment officer at Beijing-based Harvest Fund Management, said he wasn’t at all surprised about recent events.

A number of Chinese companies have come under pressure from authorities to curb capital outflows and slash their spending overseas amid concerns their borrowing could pose a risk. Dalian, the world’s biggest private property developer, has spent billions on entertainment and sports companies in the last few years.

“From the domestic investor viewpoint, we were always cautious on the companies that had made a very rapid expansion on an international basis,” Lei Jing said Thursday. “Also into territory which is not their main business concern.”

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