Corporate Governance

Mofcom delegates the authority to approve foreign-invested companies with an investment nature with registered capital of US$100 million or less to provincial-level and sub-provincial-level local authorities.

Acquisition of domestic enterprises in the encouraged or permitted category which transaction amount is less than or equal to US$100 million may be approved by local authorities.

The amended Law allows insurance companies to invest in bonds, stocks, securities investment fund shares and immovable property.

Capital contribution in the form of equity gets its official go-ahead.

A new era of differentiated regulation for insurance companies.

Before starting any programme of mass lay-offs in China, companies must be aware of the legal issues and the appropriate procedures to follow. By Nancy Sun and Kirsten Gao, Minter Ellison, Shanghai.

The Shanghai government has announced a set of incentives to attract more multinational companies to establish their headquarters in the city. By Laura Yuan, King & Wood.

Foreign companies are contemplating how to restructure their loss-making or low-profit China operations. There are several good options available, and several unwise choices, too. By Ghislain de Mareuil and Julie Tong, DLA Piper, Shanghai.

New measures formalise and streamline the process for making capital contributions using equity, although they may raise approval issues for foreign-invested enterprises.