State-owned Assets Supervision and Administration Commission of the State Council and Ministry of Finance, Circular on Matters Relevant to the Transfer of Enterprise State-owned Assets and Equity
国务院国有资产监督管理委员会、财政部关于企业国有产权转让有关事项的通知
February 28, 2007 | BY
clpstaff &clp articles &The transfer of state-owned assets must be done publicly, and be verified and approved in accordance with relevant provisions.
Promulgated: December 31 2006
Main Contents: Except in special circumstances where there is a genuine need to conduct the transfer by way of agreement, transfer of enterprise state-owned assets and equity to foreign investors shall be conducted publicly at the asset and equity exchange market, and shall be reported by the transferor to the government departments performing the relevant function for examination, verification and approval in accordance with the relevant state administrative provisions.
Transfer of enterprise state-owned assets and equity to investors from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region shall be handled with reference to the above-mentioned provisions (Section Two).
The initial listed price of the enterprise state-owned assets and equity for transfer shall be no less than the results of asset valuation that are verified or filed for the record.
Where expenses related to employee settlement and social insurance are involved in a transfer of enterprise state-owned assets and equity, such expenses may not be deducted from the net value of state-owned assets intended for the transfer in advance of valuation of pricing, and may not be offset against the transfer price.
The price for transfer of enterprise state-owned assets and equity formed publicly at the asset and equity exchange market may not, on the condition of any means of payment, be discounted or given preferential treatment (Item Five). Where it is truly necessary to conduct a transfer of enterprise state-owned assets and equity by way of direct agreement, such transfer must be subject to approval.
The acceptance of transfer by transferee may not violate the restrictive or prohibitive provisions in such areas as state economic security, and shall have apparent advantage in the promotion of aspects such as enterprise technical advancement and industry upgrade. Target enterprises that fall under the scope of key industries or key sectors of national economy shall, after transfer of part of the enterprise state-owned assets and equity by agreement, retain absolute controlling interests in the state-owned assets and equity of the enterprise (Section One).
Related Legislation: Tentative Measures for the Administration of the Assignment of Enterprise State-owned Assets and Equity, Dec 31 2003, CLP 2004 No.1 p.8
clp reference:2140/06.12.31promulgated:2006-12-31This premium content is reserved for
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