China Law & Practice

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Provisions on Several Issues Concerning the Application of the «PRC Enterprise Bankruptcy Law» (1)
关于适用《中华人民共和国企业破产法》若干问题的规定 (一)
The Provisions clarify the issues concerning the determination of reasons for bankruptcy to facilitate the implementation of the PRC Enterprise Bankruptcy Law.

Tentative Measures for the Enrolment in Social Insurance by Foreign Nationals Employed in China
在中国境内就业的外国人参加社会保险暂行办法
The Measures require foreign employees in China to be enrolled in social insurance. Arrangement is also laid down when a foreign employee departs from China before he/she reaches the specified age at which he/she can withdraw his/her pension.

Provisions for the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors
实施外国投资者并购境内企业安全审查制度的规定
The Provisions are basically a revision of the Tentative Provisions on Matters Relevant to the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors.

Tentative Provisions for the Assessment of Competitive Effects of Concentrations of Business Operators
关于评估经营者集中竞争影响的暂行规定
The Provisions list the factors that shall be considered based on the specifics and particularities of each individual case during reviews of concentrations of business operators.

Regulations for Work-related Injury Insurance (Revised)
工伤保险条例 (修订)
The revised Regulations expand the scope of applicability of work-related injury insurance and simplify the procedures for recognition of work-related injuries.

Features

A celebration of excellence
The China Law & Practice awards 2011 concluded a year of groundbreaking deals that demonstrated China’s burgeoning confidence and legal sophistication. Baker & McKenzie and Fangda Partners took home the top awards of the night, while many others were recognised for their achievements of legal distinction in the past 12 months

VIE structures under closer examination
Mofcom’s new security review measures heightens scrutiny of variable interest entity (VIE) structures operating in areas of PRC national concern

Funds: Heading in the right direction
The revised sale of securities investment funds measures introduce more competition by loosening qualification restrictions and allowing new entrants flexibility in compensation structures for value-added services

Channels ready for cross-border Rmb flows?
Over the past few years, China has been creating channels to allow a two-way cross-border flow of Renminbi (Rmb) funds to internationalise its currency. As the legal framework for this is still nascent, investors need to be cautious of practical hurdles and uncertainties

The new ICC rules: What is next for the Mainland arbitration community?
The ICC’s newly-launched arbitration rules provide guidance for the Chinese and address complex arbitrations

Trademark Law draft amendments: A snapshot
China recently released proposed Trademark Law amendments. Although they represent helpful steps forward to strengthen trade mark protection, areas remain that require further consideration

Tax basics for FIEs
Tax specialists offer their insights for potential inbound investors on fundamental tax rules they need to be aware of

News Analysis

Allow enough time to prepare a pre-merger report
New provisions provide competition notification guidance

New bankruptcy rules clarify burden of proof
Further definition on the legal causes of bankruptcy

Legislation Digest

Ministry of Finance, Measures for the Examination, Approval and Regulation of Asset Valuation Firms
财政部资产评估机构审批和监督管理办法
Asset valuation firms in the form of special general partnerships allowed.

Supreme People’s Court, Provisions on Several Issues Concerning the Application of the «PRC Enterprise Bankruptcy Law» (1)
最高人民法院关于适用《中华人民共和国企业破产法》若干问题的规定(一)
First SPC interpretation on the Enterprise Bankruptcy Law.

Ministry of Commerce, Tentative Provisions for the Assessment of Competitive Effects of Concentrations of Business Operators
商务部关于评估经营者集中竞争影响的暂行规定
Factors laid out for consideration of the competitive effects of concentrations.

Ministry of Finance and National Development and Reform Commission, Tentative Measures for the Administration of Funds for Equity Participation in Venture Investment by the Venture Investment in Emerging Industries Scheme
财政部、国家发展改革委员会新兴产业创投计划参股创业投资基金管理暂行办法
Central government finances may directly invest in venture investment enterprises.

Ministry of Human Resources and Social Security, Tentative Measures for the Enrolment in Social Insurance by Foreign Nationals Employed in China
人力资源和社会保障部在中国境内就业的外国人参加社会保险暂行办法
Expats are required to be enrolled in social insurance.

State Council, Regulations for Work-related Injury Insurance (Revised)
国务院工伤保险条例 (修订)
Rate for the lump sum work-related death supplement specified.

State Administration of Foreign Exchange, Circular on Issues Relevant to the Determination of Quotas for Provision of Security to Foreign Parties for Financing Purposes of Banks in China for the Year 2011
国家外汇管理局关于核定境内银行2011年度融资性对外担保余额指标有关问题的通知
Safe lowers banks’ quotas for provision of security to foreign parties.

Ministry of Commerce, Provisions for the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors
商务部实施外国投资者并购境内企业安全审查制度的规定
Mofcom prohibits circumvention of M&A security review by means of offshore transactions

China Securities Regulatory Commission, Measures on Trial Business of Asset Management for Specific Clients of Fund Management Companies
中国证券监督管理委员会基金管理公司特定客户资产管理业务试点办法
Entry thresholds lowered for fund management companies engaging in dedicated asset management.

State-owned Assets Supervision and Administration Commission of the State Council, Circular on Matters Relevant to the Exchange of State-owned Assets and Equity of Enterprises Directly under the Central Government
国务院国有资产监督管理委员会关于中央企业国有产权置换有关事项的通知
Restrictions imposed on exchange of state-owned assets and equity.

Ministry of Finance and State Administration of Taxation, Circular on the Deed Tax Policy for the Change of Ownership of Premises or Land from One Party to a Marriage to Co-ownership by Both Parties to the Marriage
财政部、国家税务总局关于房屋、土地权属由夫妻一方所有变更为夫妻双方共有契税政策的通知
Deed tax exempted for adding spouse’s name to the property.

Other Recent Legislation for This Month

China Law & Practice Events

IFLR India Outbound Investment Forum 2012
05 July 2012
Location: Mumbai