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.
The new rules on foreign strategic investment aim to restore investor confidence in merger and acquisition activity in China. What are the new reforms and how will they assist new investors in Chinese listed companies?
Regulatory advances in the country are making it possible for foreign investors to structure their investments in increasingly sophisticated ways, thereby helping minimize risks.
Healthier balance sheets and more sophisticated ambitions of growth have projected mainland Chinese companies onto the global M&A stage. Although they are becoming more competitive in international bidding processes, mainland companies remain constrained by a complex domestic regulatory regime governing outbound investments.