The Provisions add extra regulation by installing a more transparent and tightly controlled administration system and imposing additional requirements for foreign exchange registration.
The Provisions underline the PRC's concern over inbound M&A activities. It adds extra regulations to the administration system, determination of qualified FIEs, certain M&A activities, and foreign exchange registration.
From September 8 2006, share swaps will be allowed instead of cash payment when foreign companies merge with or acquire PRC companies, according to the…
Prohibits direct offshore ownership structure, guaranteed fixed returns for foreign-invested real estate enterprise, and heightens scrutiny in the area of equity interests transfer and merger & acquisition in real estate-related industry.
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.