VIE

China issues Draft Foreign Investment Law transforming foreign investments regime

China’s Ministry of Commerce released a draft of a new Foreign Investment Law for public comment on January 19, 2015. If the Law becomes adopted, it will have a strong impact on the regime for foreign investment in China; it will reduce barriers to foreign investments, enhance transparency and control the regulations in restricted industries.

Overview of the major changes

CHINA NEWSLETTER | AUGUST 2014

Representative Office Incorporation in China: Goods and Bads

Representative Offices are the cheapest, fastest and easiest way to incorporate in China. This structure enables you to sense the market, understand its dynamics, taking your first steps in China. However, such advantages come at a cost: they are not allowed to conduct business in China.

Investing in China: Be careful about the Variable Interests Entities

About a half of Chinese companies listed in NYSE and NASDAQ are using Variable Interests Entities so as to avoid the restrictions over foreign investments. While they are a very good way for foreigners to benefit from Chinese companies’ rapid growth, major risks loom, threatening foreign investors’ ability to exercise their shareholding rights on the Chinese company. In this article, S.J.Grand offers you an overview of the VIE’s advantages and drawbacks.

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