Apr. 26 - Over the last few years, delays and uncertainties have arisen in many merger control cases in China mainly due to the lack of a simplified merger review process. Therefore, it has become urgent and necessary for China to adopt a simplified procedure to review its merger cases. In the first quarter of 2013, China’s Ministry of Commerce (MOC) cleared 45 mergers unconditionally, a 24 percent decline compared with the mergers cleared in the last quarter of 2012.
In response, the MOC released the “Interim Regulations on Standards for Simple Cases (Draft for Comments) (hereinafter referred to as ‘Regulations’)” on April 3, which sets out standards for simple merger cases that can be subject to a fast-track clearance process. Detailed information can be found below. Continue reading
Nov. 30 – China is attaching more importance to supporting company restructuring as well as mergers and acquisitions (M&As), hoping these business activities will help optimize the country’s resource distribution and push forward economic transition. On Monday, the State Administration for Industry and Commerce (SAIC) released a new document, requiring government departments to offer greater convenience for the registration of businesses after combination and separation (C&S).
The document, titled “Opinions on Improving Registration Services for Companies after C&S and Supporting Enterprise M&As as well as Restructuring (gongshangqizi  No.226),” specified the following aspects in which local Administrations for Industry and Commerce (AICs) shall improve their registration services for businesses after C&S: Continue reading
Posted in Business, Legal and Regulatory, Regulatory Update
Tagged China Company Combination, China Company Seperation, China Corporate Forms, China Corporate Registration, China Corporation Limited, China Domestically-invested Enterprise, China Economic Transition, China Foreign-invested Enterprise, China Limited Liability Company, China M&A, China Paid-in Capital, China Registered Capital, China Restructuring, China Shareholders, State Administration for Industry and Commerce
Oct. 18 – Following the issuance of a circular draft concerning cross-border RMB-denominated foreign direct investment (FDI) in August, the Chinese Ministry of Commerce (MoC) has recently fixed and released the official legal document, which can be used as a guidance for foreign investors who intend to conduct FDI with RMB legally obtained overseas.
The “Circular on Issues Concerning Cross-border RMB-denominated FDI (shangzihan  No.889),” issued on October 12, does not present significant differences compared to the previous draft version, in which the definition of “RMB legally obtained overseas” is given and approval procedures for RMB-denominated FDI projects are specified. Continue reading
By Eunice Ku, Rachel Xuan and Susan Kang
Oct. 6 – In 2003, the Chinese government first laid down in a single piece of M&A legislation the relevant principles, procedures and requirements allowing foreign investors to acquire Chinese limited companies. The most recent version, the “Rules on Acquisition and Merger of Domestic Enterprises by Foreign Investors (M&A Rules),” was promulgated in 2006 and revised in 2009.
These regulations provide investors with a basic framework and guidance on carrying out M&A activities in China, while giving the government ample discretion to examine and approve M&A activities that would potentially impact national and economic security. Continue reading