Rocky road for foreign-invested holding companies

September 03, 2011 | BY

clpstaff &clp articles

An internal notice from the foreign exchange regulator creates more difficulties for foreign-invested holding companies wanting to reinvest their dividends in China

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Chinese holding companies (so-called Foreign-invested Companies with Investment Nature or “Holdcos”) are normally established by foreign investors to act as platforms for their investment in China. Holdcos often want to