Beijing Municipality, Acquisition by Foreign Investors and Chinese Non-publicly Owned Economic Organizations of State-owned Industrial Enterprises Tentative Measures

Promulgated: September 30 2003
Applicability: The Measures apply to the transfer of all or part of the state-owned property rights of a state-owned enterprise to the purchaser by the property right owner; to the transfer of all or part of the state-owned equity in a state-owned enterprise to the purchaser by the equity holder; to the sale of all or part of the assets of a state-owned enterprise to the purchaser where the purchaser sets up a new enterprise with the assets themselves or jointly with the enterprise selling the assets; and to the reorganization of an enterprise when a state-owned enterprise attracts investment through a capital increase or by a share issue (Article 2).

Main contents: Article 4 of the Measures states the procedure to be followed when making such acquisitions. Article 5 covers how assets are to be valued and transferred. Article 7 explains how the enterprise's claims and debts should be decided before acquisition. Article 8 states the different ways of dealing with the land used by the enterprise, transfer of leaseholds, etc. Article 10 covers the splitting off and transfer of non-business assets.
Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21 and Beijing Municipality, Administration of Equity Transactions Provisions