Full Text Translations

Circular on Delegating Matters Concerning the Changes to, and Examination and Approval of, Foreign-invested Companies Limited by Shares and Enterprises
关于下放外商投资股份公司、企业变更、审批事项的通知
The Ministry of Commerce delegates its power to approve the establishment of foreign-invested companies limited by shares to provincial-level departments in charge of commerce.

Circular on Delegating Matters Concerning the Examination and Approval of Foreign-invested Commercial Enterprises
关于下放外商投资商业企业审批事项的通知
The Circular states that, with certain exceptions, the investment in and establishment of commercial enterprises by foreign investors shall be subject to the examination of the provincial-level departments in charge of commerce.

Provisions for the Administration of Foreign-invested Advertising Enterprises
外商投资广告企业管理规定
The revised Provisions delegate some of the approval power concerning the establishment of foreign-invested advertising enterprises to provincial-level government departments.

Provisions for the Administration of the Solvency of Insurance Companies
保险公司偿付能力管理规定
The revised Provisions set forth requirements concerning solvency assessments, solvency reports, solvency management and solvency monitoring.

Operational Guidelines for the Private Equity Investment Trust Business of Trust Companies
信托公司私人股权投资信托业务操作指引
The Guidelines set forth the requirements for engaging in the private equity investment trust business.

Trial Provisions for the Offering of Exchangeable Bonds by Shareholders of Listed Companies
上市公司股东发行可交换公司债券试行规定
Shareholders that hold shares of listed companies may, through sponsorship of a sponsor, apply to the China Securities Regulatory Commission to offer exchangeable bonds.

Opinion on Issues Concerning the Levy of Place Use Fees on Foreign-invested Enterprises
关于外商投资企业场地使用费征收问题的意见
The Opinion specifies that if a foreign-invested enterprise obtained the leasehold through grant, it is not required to pay place use fees as it has already paid a land grant fee.

Click here for more...

Features & Analysis

Legal market not yet ready for limited liability partnerships
New rules concerning the establishment of local law firms and lawyers’ practice have opened the door for partnerships. But limited liability partnership – the type that lawyers had been hoping for – is nowhere to be seen in the rules.

Foreign investment welcome in China’s new advertising landscape
The Provisions for the Administration of Foreign-invested Advertising Enterprises (the Provisions) were promulgated by the State Administration for Industry and Commerce (SAIC) and took effect on October 1. The Provisions replaced the Regulation of Administration of Foreign Invested Advertising Entities and reflects a liberalisation trend that encourages foreign investment in this specialised business sector. By Richard Wageman, DLA Piper, Beijing.

Building a New Regulatory System for the Solvency of Insurance Companies
The promulgation of the Provisions for the Administration of the Solvency of Insurance Companies shows just how far China’s insurance industry has developed through a regulatory framework which has come about following years of organic development. By Lü Guoming*, Dr. Xu Guojian & Pek-Siang Tee, Boss & Young, Shanghai.

Guidelines for Trust Companies to Operate a Private Equity Investment Business in China
The China Banking Regulatory Commission recently issued guidelines which provide additional legal basis and specific operational guidelines for trust companies in China. By Allen Zhou, Paul, Hastings, Janofsky & Walker partner.

Can Exchangeable Bonds Satisfy Cash-Hungry Shareholders?
The Trial Provisions for the Issuance of Convertible Bonds by Shareholders of Listed Companies promulgated by the China Securities Regulatory Commission opens a new debt financing channel for cash-hungry shareholders in China’s financial market. These Provisions are designed to stabilise the country’s stock market and ease oversupply of stocks in the A-share market, as panic sets in about possible dumping of newly freed locked-up shares under the Share Segmentation Reform launched in 2005. By Jiang Jiang, Hylands Law Firm partner

Private Banking in China – When the Honeymoon Is Over
Private banking in China only received its baptism in September 2005 with the promulgation of the Interim Administrative Rules on Private Wealth Management Business of Commercial Bank. Some commentators have argued that the monetary threshold for the private wealth management regime is so low that its regulatory ambit covers territory more properly classified as retail banking than true private banking. By Jane Jiang, counsel, Corporate Practice, Allen & Overy Beijing and Fai-hung Cheung, counsel, Banking Practice, Allen & Overy Shanghai

Bidding for Real Estate Projects in China
Land prices in China’s tier one cities have risen at a terrific rate over recent years as available construction space has been squeezed. In response to this, local Chinese authorities have sought to extract their share of profits – at the time of granting the land use rights to the preferred developer – usually through some form of bidding process. By Thomas Fairley, Norton Rose

Click here for more...

Business Law Bulletins

The Claim of the Abuse of Dominance and its Interpretation

Legal Regime of Equity Contribution in China and its Implications for Direct Investment

A New Model of Direct Venture Capital Investment in China

Introduction to the PRC Insurance Law (Draft Amendment)

China’s Technology Transfer Rules: A Stop Along the Path to High-New-Tech Enterprise Status

Several Issues regarding Guarantee Companies in China

Customs Classification and Advance Ruling Program

CSRC to Further Regulate the Valuation Measures of Securities Investment Funds

Indian Innovation Act: Illustrating the Impact

Cessation or Termination of a Business

Taxation in Kazakhstan

Mergers and Acquisitions in Ukraine

Click here for more...