The Circular drops the previous acquisition deposit requirement but adds a repatriation requirement where approval procedures are not completed within six months.
China is one step closer to the qualified domestic institutional investor (QDII) programme, allowing banks, fund management firms, insurers and securities institutions to convert Chinese clients' renminbi into foreign currency and invest it overseas.
The Implementing Opinion issued jointly by the State Administration for Industry and Commerce, the Ministry of Commerce, the General Administration of Customs adn teh State Administration of Foreign Exchange clarifies issues such as organizational structure, incorporation form, timing and documentary requirements pertaining to approval applications, registration and capital contribution of foreign-invested enterprises, reinvestment requirements as well as approvals and registration of amendment. In particular, it elaborates on the basic rules in Article 218 of the Company Law on the applicability of laws to foreign-invested companies, and establishes the position that Company Law should govern foreign direct investment in China unless pre-empted by FIE laws. The Opinion also produces a list of FIC classification, including 13 FIEs formed as limited liability companies and 10 as foreign-invested companies limited by shares. The respective roles of board of directors, the shareholders' meeting, and the articles of association in corporate governance of various FIE structures are delineated.
China has revised and issued new accounting standards, bringing the country's financial reporting system for listed companies in line with international practices.
New restrictions are in place on share offering, price floor and private placements in particular for foreign strategic investors. A new three-stage application process is introduced.
China has revised and issued new accounting standards, bringing the country's financial reporting system for listed companies in line with international practices.
In an effort to widen insurers' investment options, insurance regulatory authorities have issued new rules launching a pilot programme allowing insurance companies to invest in infrastructure projects. Will the new laws provide a safe means to boost returns for China's insurance companies and their policyholders?
In 2005, China's Ministry of Commerce announced the expiry of anti-dumping measures offering protection to various Chinese domestic industries from imported products being 'dumped' onto the local market. Given that domestic industries actively participate in 'sunset' reviews to extend the application of the measures, it would be practical for foreign producers and exporters to become familiar with the procedural and substantive elements of the sunset review process in China.
In a bid to raise returns and diversify its portfolio, the PRC's National Social Security Fund has asked foreign institutions to apply to manage its billions of dollars in pension funds to be invested overseas. What type of investments are permitted and what mechanism has been put in place to safeguard the overseas management of the investment funds?