July 2010

The State Council recently released its Suggestions to Further Improve the Utilization of Foreign Investment .  It encourages a more optimal usage of foreign investment by promoting foreign investment in high-end manufacturing industries, high-tech industries, modern services industries, new energy and energy-saving environmental protection industries. Before the end of 2010, the importation of science and …

How China Looks to Improve its Utilization of Foreign Investment Read More »

In a recent move, China’s National Development and Reform Commission (NDRC) announced that individuals and companies may be fined up to 2 million RMB (295,000 US dollars) for spreading deceptive or false information concerning price hikes.  The new policy stems from the Commission’s goal effort to curtail price manipulation and profiteering. The recommend punishments for …

China’s Crackdown on Price Gouging Read More »

China’s State Administration of Taxation (SAT) recently clarified issues dealing with business taxes levied on international telecommunication services.  According to the provisions of the Interim Regulations for Business Tax, any income acquired by any unit or individual through the leasing of international telecommunication network resources, which may include foreign electric circuits, underwater cables, satellite repeaters, …

China’s SAT Clarifies Taxation Rules for International Telecommunication Services Read More »

Recently, the Beijing Higher People’s Court issued “ Guiding Opinions on Hearing Disputes over Online Copyright ,” which mandates two elements that must be present for an infringement by an internet service provider to occur.  Usually infringements are related to search engines, data storage, hyperlinks, or peer-to-peer networking.  The two necessary elements include: there must …

Beijing High Court: Guidance on the of Hearing of Internet Copyright Cases Read More »

Beijing, China – July 15, 2010 China’s Ministry of Commerce (MOFCOM) recently released new regulations governing the divestiture of assets.  Divestiture is often necessary in order to comply with a merger approval.  Though the new regulations are deemed “provisional” they will be in effect until MOFCOM decides to revise them, which could be a period …

MOFCOM Issues New Provisional Regulations on Divestitures Read More »

Earlier this week a Guangzhou court conducted a criminal trial via video conference. An appeal to a robbery conviction was heard by the Guangdong High Court, the highest level judicial forum in the province. The judges and prosecutors were located in Guangzhou, while the appellant was held in Heyuan. Video conference trials present many advantages …

Video Conference Trial Conducted in Guangdong Read More »

At the close of 2009, forty-four Asian exchange-traded funds (“ETF”) were listed on the Stock Exchange of Hong Kong. In the first five months of 2010, this number has grown to sixty-two, an increase of over thirty percent. This drastic increase is representative of the robust momentum and growth potential of the ETF market. Factors …

Asian ETF Market Optimism Read More »

On 25 May 2010, China’s State Administration of Taxation (SAT) issued another circular to strengthen the collection of land appreciation taxes (LAT).  Circular 53 was the second circular issued by the SAT on the subject of LAT within 10 days, following the issuance of Circular 220.  Unlike Circular 220, which only clarified certain technical issues, …

Stricter Land Tax Enforcement Coming Soon Read More »

In 2008, the China Banking Regulatory Commission announced the “Guidelines on the Risk Management of Mergers and Acquisition Loan Business of Commercial Banks.” These guidelines now allow commercial banks in China to finance M&A activities. The new guidelines have generated massive interest from Chinese commercial banks in exploring opportunities in M&A financing to support Chinese …

Outbound M&A Financing Regulations Read More »

China’s State Administration of Foreign Exchange (SAFE) recently issued a notice to clarify the registration procedures necessary for onshore banks to make direct foreign investments.  Onshore banks include policy banks, State-owned commercial banks, joint stock commercial banks, urban and rural commercial banks, and even locally incorporated foreign banks. Once an onshore bank has obtained approval …

New Rules Clarify Procedures for Outbound Direct Investments by Onshore Banks Read More »