PRC companies' acquisition of shares in Singapore-listed companies

This article highlights some issues that relevant parties should take note of when acquiring shares in companies that are listed on the Singapore Exchange Securities Trading Limited (SGX-ST). Generally, PRC companies must go through approval/examination procedures with the (i) State Administration of Foreign Exchange (Safe), (ii) Ministry of Commerce (Mofcom), and (iii) State Council/National Development and Reform Commission (NDRC), or their local equivalents for the proposed acquisition. The applicable PRC laws and regulations include the Administrative Measures for Foreign Exchange Administration of Overseas Investment, Implementing Rules for Administrative Measures for Foreign Exchange Administration of Overseas Investment, Circular on Relevant Issues Concerning Intensifying the Reform of Foreign Exchange Administration on Overseas Investment (Circular 120), Decision of the State Council on Reform of the Investment System, Provisions on the Examination and Approval of Investment to Run Enterprises Abroad¹, Interim Administrative Measures for Examination and Approval of the Overseas Investment Projects (Interim Measures), Notice of Mofcom and Safe regarding Printing and Distributing the Reporting System for the Overseas M&A Related Matters of Enterprises at the Preliminary Stage (Joint Notice), and Circular on the Revision of Certain Foreign Exchange Control Policies Relating to Overseas Investment (Circular 27).