SAFE Plugs Holes for China/Offshore Round-trip Investments

| BY

clpstaff

Cross-border "round-trip" investments and related transactions are now supported and constrained by newly-standardized comprehensive governmental procedures for foreign exchange registration.

By Neal A. Stender, Selena M. She and Mingyi [Calvin] Jin of Orrick,
Herrington & Sutcliffe

A series of regulatory changes has affected round-trip investments, consisting of transfers of assets or company equity from China to offshore companies, along with reinvestments or loans back into China by those “special purpose companies” [often referred to as special purpose vehicles, or SPVs].

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