By Xiong Jin, Feng Caihong, Liu Qing and Wei Kao King and Wood Mallesons’ Mergers & Acquisitions Group On November 19, 2012, the State Administration of Foreign Exchange (“SAFE”) promulgated the Circular Regarding Further Improvement and Adjustment of Policies on Foreign Exchange Administration of Direct Investment (Hui Fa [2002] No. 59, the “Circular”) which aims to… Continue Reading
Tag Archives: FDI
Guide to Takeovers in Australia
Posted in Corporate, FDI, M&ABy King & Wood Mallesons We have launched our updated Guide to Takeovers in Australia in both English and Chinese. A must-read for anyone with an interest in mergers and acquisitions. English PDF: http://www.mallesons.com/Documents/A_guide_to_takeovers_in_Australia.pdf
A guide to doing business in Australia
Posted in Corporate, FDIBy King & Wood Mallesons King & Wood Mallesons has updated its guide to doing business in Australia. Australia welcomes and encourages foreign investment and has a favourable investment environment. Investments that create exports, replace imports, introduce new technology or create employment are particularly welcome. Australia offers significant benefits for foreign investors, including: a resilient… Continue Reading
NDRC reply on RMB Fund with FIE GP
Posted in Corporate, Finance, Foreign InvestmentBy Zhang Yi, Alan Du and Hu Xia King & Wood Mallesons’ Corporate Group Shanghai Office Recently, it was reported by various media sources that the National Development Reform Commission (NDRC) had issued certain policies requiring an RMB fund (the ‘FIE GP Fund’) with a foreign invested enterprise (the ‘FIE’) acting as the general partner… Continue Reading
Variable Interest Entity Structure in China
Posted in Foreign InvestmentBy Zeng Xianwu Bai Lihui King & Wood’s Foreign Direct Investment (FDI) Group To achieve the initial public offering ("IPO"), there are two options for Chinese companies, onshore listing (also known as A-share listing) and offshore listing (also known as red-chip listing). Since the conditions and qualifications for A-share listing are usually a little higher… Continue Reading
在中国通过VIE结构进行外商投资将遇到挑战
Posted in Foreign Investment作者：徐萍 金杜律师事务所外商投资组 长期以来，可变利益实体结构（即Variable Interest Entity，“VIE”结构）一直是外国投资者进入中国外商投资限制领域的常用模式。与此同时，VIE结构一直以来也是中国境内企业在境外资本市场实现上市的常用做法。 第一个通过VIE结构上市的著名案例便是新浪，其于2000在美国纳斯达克成功上市。实际上，VIE结构的另一种常用的说法就是“新浪模式”。新浪使用VIE结构成功绕开了中国电信增值产业对于外商投资的限制。从那以后，无论是外国投资者还是国内投资者在中国很多限制或禁止外商投资的领域开始复制使用VIE结构。 VIE结构实质上是指一种安排，根据该安排，在中国境内的一家全资或合资外商投资企业（“控股公司”）取得另一家实际运营公司（“运营公司”）的控制权，而该运营公司则持有必要的许可以在限制或禁止外商投资的领域内开展业务。由于这些产业被中国政府规定为限制或禁止外商投资的产业，所以外国投资无法直接向该运营公司进行投资。相应的，外国投资者会在控股公司和运营公司之间采取多种合同安排，以便使该控股公司获得对运营公司的运作和管理的实际控制权。该运营公司的利润也将流回控股公司，并其业绩将最终纳入控股公司。
天津启动QFLP试点 率先给予外资PE国民待遇
Posted in Foreign Investment金杜律师事务所外商直接投资组 继上海、北京、重庆出台外商投资股权投资企业试点文件后，天津的QFLP(合格境外有限合伙人)试点工作也已展开。2011年11月15日，天津市发展和改革委员会、天津市人民政府金融服务办公室、天津市商务委员会、天津市工商行政管理局联合发布《关于本市开展外商投资股权投资企业及其管理机构试点工作的暂行办法》("《办法》")及其实施细则。 《办法》对由外商投资的股权投资基金和股权投资基金管理企业的设立、资金募集和投资、风险控制、信息披露、备案管理等方面进行详细规范，同时鼓励该试点在天津滨海新区先行先试。
MOFCOM Releases Circular on Cross-border RMB Direct Investment
Posted in Foreign InvestmentBy King & Wood’s Foreign Investment Group On October 12, 2011, the Ministry of Commerce (MOFCOM) promulgated the Circular on Issues Relating to RMB Cross Border Direct Investment dated (the "Circular"). The Circular provides that outbound investors (including investors of Hong Kong, Macao and Taiwan) can make direct investment with RMB funds they obtained legally… Continue Reading
商务部发布《商务部关于跨境人民币直接投资有关问题的通知》
Posted in Foreign Investment作者：金杜律师事务所外商投资部 2011 年10 月12 日，商务部正式颁布了《商务部关于跨境人民币直接投资有关问题通知》（ “《通知》”）。《通知》规定，境外投资者（含港澳台投资者）可以合法获得的境外人民币依法开展直接投资活动。
Variable Interest Entity (VIE) Structure for Foreign Investment in the PRC May Face Challenge
Posted in Foreign InvestmentBy Xu Ping King & Wood’s Foreign Direct Investment Group The variable interest entity ("VIE") has long been a popular structure for foreign parties to invest in sectors which are restricted by China’s industrial policy to foreign investment. In addition the VIE structure has also been used as a means by which Chinese domestic entities… Continue Reading
中国人民银行新规则助推人民币跨境业务
Posted in Finance金杜律师事务所融资组 自2009年7月跨境贸易人民币结算试点工作启动以来，相关业务的容量、复杂性及银行业务经历了飞速的发展。在2年的时间内，试点范围在20多个省(区、市)得以实施，中国人民银行计划在今年内将试点范围扩大至全国。为满足企业和银行对政策透明度的强烈需求，外汇管理局、商务部等监管当局已经颁布了一系列的规则和指引以促进人民币跨境业务。2011年6月8日，中国人民银行颁布了《中国人民银行关于明确跨境人民币业务相关问题的通知》(银发[2011]145号)(简称“通知”)。该《通知》从积极的角度阐明了与跨境人民币业务相关的若干重大问题。迄今为止，该《通知》被市场称为“实现人民币国际化的重大进步”。
PBOC New Rules to Boost RMB Cross-border Transactions
Posted in FinanceBy King & Wood’s Banking Group Since the launch of the pilot program of RMB settlement in cross-border trade transactions in July 2009, the volume and complexity of the said transactions and the ancillary banking businesses have been rapidly increasing. During the past two years, the pilot program was carried out in 20 provincial regions…. Continue Reading
China Issues Rules on National Security Review for M&A Transactions
Posted in Mergers & AcquisitionsBy Xu Ping, Leading partner of King & Wood’s Corporate Group On February 3, 2011, the General Office of the PRC State Council issued the Notice Regarding the Establishment of National Security Review Mechanism for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (“国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知”) (the "Notice"), which will take effect 30 days after its… Continue Reading
China M&A: Assembling an Effective Team for a China Transaction Part III
Posted in Foreign InvestmentBy Mark Schaub, Partner, Corporate, King & Wood Shanghai Most companies engaging in a China project will likely need support from external consultants. This final section highlights the remaining members of the China deal team, including translators, accountants, and outside counsel.
China M&A: Assembling an Effective Team for a China Transaction Part II
Posted in Foreign InvestmentBy Mark Schaub, Partner, Corporate, King & Wood Shanghai Most companies engaging in a China project will likely need support from external consultants. However, selecting the external team is often more difficult than assembling the internal team — who do you need? How do you find good ones? And what role should they play? This… Continue Reading
China M&A: Assembling an Effective Team for a China Transaction Part I
Posted in Mergers & AcquisitionsBy Mark Schaub, Partner, Corporate, King & Wood Shanghai Many West European and US companies have thinned out their ranks of middle management in the never-ending pursuit of shareholder value. A China project is likely to be more time intensive and involved (and therefore expensive) than the foreign company initially forecasts. For this reason many… Continue Reading
Due diligence: deal killer or deal saver?
Posted in Foreign Investment, Mergers & AcquisitionsBy Mark Schaub, Partner, Corporate, King & Wood Shanghai Every multinational company needs a China strategy. The country’s resilient economic performance during the global downturn has made it even more attractive to some overseas investors, but how should such companies arrive at a realistic appraisal of the potential risks and opportunities of a specific deal?
China Reaffirms Support for Foreign Investment
Posted in Foreign InvestmentBy Xu Ping, Partner, King & Wood’s FDI Department In continued support of foreign direct investment into China, on April 13, 2010, China’s State Council released the Further Views on the Utilization of Foreign Capital (国务院关于进一步做好利用外资工作的若干意见). These new guidelines for foreign investment in China encourage foreign funds to flow into high-end manufacturing, hi-tech and eco-friendly… Continue Reading
Measures for Foreign Invested Partnerships Issued: Has the Door Opened?
Posted in Foreign InvestmentThe Administrative Measures for Establishment of Partnership Enterprises in China by Foreign Enterprises or Individuals (the “Measures”) was issued by State Council on 2 December 2009. The Measures, effective from 1 March 2010, will allow foreign investors to directly act as partners of partnerships in China.
Franchising Challenges in China
Posted in Corporate, Foreign Investment, Intellectual PropertyOnce a friend of mine visited Shanghai and asked me to recommend some quick restaurants. After listing a few options, I realized that he was not interested in them as he just wanted to find a simple restaurant providing real Shanghai cuisine. It dawned on me that, we were surrounded by national and international franchised… Continue Reading
Foreign Exchange Capital: Restrictions on Domestic Investment
Posted in Corporate, Foreign InvestmentRecently, the Chinese government issued a couple of new laws and regulations to curb overseas “hot” money and strengthen the administration of foreign exchange. On August 5, 2008, the State Council amended and promulgated the Regulations on Foreign Exchange Administration of the People’s Republic of China which requires that foreign exchange and the fund… Continue Reading
New Technology Import Regulations May Cause Headaches for the Unprepared
Posted in Corporate, Foreign Investment, International Trade, WTO & Market Access“…likely to have a material, practical affect upon … to and from China.”