Legislation

• Circular on the Criteria for the Recognition of Newly Established Enterprises that are Eligible for Preferential Enterprise Income Tax Policies

  关于享受企业所得税优惠政策的新办企业认定标准的通知

  (Issued by the Ministry of Finance and the State Administration of Taxation on, and effective as of, January 9 2006.)

  January 31, 2006

• Measures for the Administration of Strategic Investments in Listed Companies by Foreign Investors

  外国投资者对上市公司战略投资管理办法

  While it maintains the existing distinction between partial and full foreign-invested enterprise status, the Measures have new stipulations on investor qualifications, share transfer regulations, general offer requirements, corporate procedures and methods of acquisition payment.

  January 31, 2006

• PRC Securities Law (Amended)

  中华人民共和国证券法 (修订)

  This Law regulates the public offering and trading of securities, takeover of listed companies, stock exchanges, supervision of securities companies, securities depository and clearing institutions, securities service institutions, securities associations, and the securities regulatory authority.

  January 31, 2006

• Ministry of Finance and State Administration of Taxation, Circular on Business Tax Policy Concerning Qualified Foreign Institutional Investors

  财政部、国家税务总局关于合格境外机构投资者营业税政策的通知

  Issued: December 1 2005Main contents: Business tax shall be exempted from spread income gained in securities trading business in China engaged in by domestic…

  November 30, 2005

• General Administration of Quality Supervision, Inspection and Quarantine, Implementing Measures for the PRC Regulations for the Administration of Industrial Product Production Permits

  中华人民共和国工业产品生产许可证管理条例实施办法

  Promulgated: September 15 2005Effective: November 1 2005Interpreting authority: General Administration of Quality Supervision, Inspection and QuarantineApplicability:…

  November 30, 2005

• Circular on Income Tax Treatment Issues Relevant to the Internal Disposal of Assets by Foreign-invested Enterprises

  关于外商投资企业内部处置资产有关所得税处理问题的通知

  The Circular specifies the circumstances under which there is a disposal of assets internally and the circumstances under which it is not deemed a disposal of assets internally.

  November 30, 2005

• Circular on Issues Relevant to the Refund of Enterprise Income Tax in Connection with Re-investments by Foreign Investors

  国家税务总局关于外国投资者再投资退还企业所得税有关问题的通知

  The Circular clarifies the refund of enterprise income tax in connection with re-investments by foreign investors of profits distributed after equity transfers.

  November 30, 2005

• China Securities Regulatory Commission, Circular on the Qualifications of Shareholders of Futures Brokerages and Related Issues

  中国证券监督管理委员会关于期货经纪公司股东资格及相关问题的通知

  Issued: September 26 2005Effective: as of date of issueApplicability: The Circular on Issues Relevant to Equity Participation by Hong Kong and Macao Service…

  November 30, 2005

• Other Recent Legislation for this Month

  National LegislationBANKINGSupplementary Circular on Issues Relevant to Handling of the Renminbi Business by Mainland Banks and Hong Kong Banks 关于内地银行与香港银行办理人民币业务有关问题的补充通知L3600/05.12.04Electronic…

  November 30, 2005

• Ministry of Commerce and State Administration for Industry and Commerce, Announcement [2005] No.72 Announcing the Scope of Products that May be Sold Directly

  商务部、国家工商行政管理总局公告2005年第72号 — 公布直销产品范围

  Issued: November 2 2005Main contents: In accordance with the Regulations for the Administration of Direct Selling, the scope of products that may be sold…

  November 30, 2005