By 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 outbound (the "Offshore RMB").Continue Reading MOFCOM Releases Circular on Cross-border RMB Direct 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。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》
By 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 could list offshore on international capital markets.
The first well known VIE structure was that of Sina.com in its 2000 listing on NASDAQ. Indeed the VIE structure is also commonly known as a "Sina Structure". Sina used the VIE as a workaround structure to avoid restrictions on foreign direct investment (FDI) in the value-added telecom services sector. Since then, both foreign and Chinese investors alike have replicated the VIE structure in many other sectors of China’s economy where FDI is either restricted or prohibited to foreign investors.Continue Reading Variable Interest Entity (VIE) Structure for Foreign Investment in the PRC May Face Challenge
by King and Wood’s Finance Group
Further to Circular No. 145, on 14 October 2011 PBOC released new rules on RMB FDI, the Measures on Administration of the RMB Settlement in relation to Foreign Direct Investment ("PBOC Rules") to roll out PBOC’s detailed management system. The PBOC Rules cover all the FDI aspects denominated in RMB, including capital injection, payment of purchase price in the acquisition of PRC companies, repatriation of dividends and distribution as well as RMB denominated cross-border loans. The PBOC Rules adopt similar methodology applied by SAFE to foreign currency FDI but appear to be more friendly. On the same day, MOFCOM also issued a circular ("MOFCOM Circular") to clarify certain issues in relation to cross-border RMB FDI transactions.
We highlight the following aspects we deem of significance:Continue Reading RMB FDI Goes to Fast Track
金杜律师事务所 融资组
继银发(2011)145号文之后, 2011年10月14日中国人民银行就人民币外商直接投资出台新规则《外商直接投资人民币结算业务管理办法》(“人行办法”), 规定了有关人民币结算的具体操作。 人行办法涉及到以人民币进行外商直接投资的方方面面, 包括资本注入、并购中国企业购买价款的支付、股息和利润分配的汇出以及人民币跨境贷款。 人行办法延续了外管局对外汇直接投资的监管思路, 但程序更为简便。 同一天, 商务部也出台通知(“商务部通知”)规定了跨境人民币直接投资交易的相关问题。
我们认为比较重要的方面包括:Continue Reading 人民币外商直接投资进入快车道
By Susan Ning, Liu Jia and Angie Ng
It’s been slightly over a month since the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses. Thus far, it is not clear how many (if any at all) foreign-local deals have undergone the NSR process, Pursuant to the rules and regulations1 which govern the NSR process, there is no obligation on the part of the Chinese government to publish any determinations (whether deals are approved or not) in relation to deals which undergo the NSR process.Continue Reading Local commerce administrative agencies and the national security review process
By Mark Schaub, Feng Xin, Duncan Hwang King & Wood’s Foreign Direct Investment Practice
A. General Devolution to Lower Levels
China’s Ministry of Commerce (MOFCOM) has continued their trend of further delegating approval competency to lower governmental levels. This delegation of approval competency to local authorities will greatly accelerate the approval process for foreign
作者：汪蕊，合伙人 ，金杜律师事务所，奥运工作团队
作为取得奥运会市场开发权益的对价，各相关类别的赞助商向奥运会提供了金额可观的资金和实物投入。每一届奥运会的成功举办都离不开赞助商的大力支持。因此，国际奥委会将赞助商的权益保护视为奥运会筹备组织工作的重要环节。而北京市政府和北京奥组委也在《主办城市合同》及《市场开发计划》中做出了庄严的承诺，将采取一切必要措施防止和打击任何形式的隐性市场行为。Continue Reading 北京2008奥运会的反隐性市场措施