Foreign Direct Investment

Increase in cross-border Rmb investments expected

These Measures govern the handling of renminbi settlement matters relating to foreign direct investment by banks.

The Circular liberalises the market entry conditions for, and scope of business of, wholly foreign-owned shipping companies.

The Circular lists the circumstances under which cross-border direct investments in renminbi shall be submitted to the Ministry of Commerce for review.

Mofcom prohibits circumvention of M&A security review by means of offshore transactions

Expats are required to be enrolled in social insurance.

The Provisions are basically a revision of the Tentative Provisions on Matters Relevant to the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors.

The Measures require foreign employees in China to be enrolled in social insurance. Arrangement is also laid down when a foreign employee departs from China before he/she reaches the specified age at which he/she can withdraw his/her pension.

Overseas investors may indirectly own 5% of equity interest in securities companies.