Shanghai Municipality, Implementing Opinions on the Thorough Implementation of the «State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment»
上海市贯彻《国务院关于进一步做好利用外资工作的若干意见》的实施意见
February 07, 2012 | BY
clpstaff &clp articles &Shanghai encourages the use of overseas renminbi by FIEs for capital contribution.
Main contents: According to Article 1 of the Opinions, the following foreign investment activities shall be encouraged and promoted:
(i) Multinational corporations (MNCs) are encouraged to establish regional headquarters and functional organisations such as sales centres, procurement centres, settlement centres, research and development centres, fund management centres, logistics and allocation centres, shared service centres and data centres.
(ii) Foreign investment in lease financing, microfinance, payment services by non-financial institutions, equity investment, venture investment and financing security are encouraged. Electronic commerce shall be developed, and the establishment of business organisations in Shanghai by international cruise companies shall be promoted. Foreign investment in information services; culture and innovation; tourism, exhibitions and conventions; and education and training services shall be promoted.
(iii) Land shall be supplied in priority to foreign-invested projects in the state encouraged category that support land conservation. The minimum land grant price shall not be lower than 70% of the price for the corresponding land grade of the municipality.
(iv) Foreign-invested enterprises (FIEs) are encouraged to improve, transform and upgrade technology. Qualified FIEs are permitted to lease out their own vacant plant facilities in accordance with the relevant provisions.
(v) MNCs are encouraged to establish global research and development centres in Shanghai.
Article 2 states that the forms of foreign investment shall be diversified:
(i) The financing channels for FIEs shall be expanded. Qualified FIEs that offer shares, corporate bonds and medium-term notes to the public in China shall be actively promoted. The consolidation of their businesses in China by MNCs for their consolidated listing on the A-share market in China shall be promoted. Overseas capital markets shall be well utilised and the overseas listing of qualified FIEs shall be supported. The use of domestic loans for mergers and acquisition by FIEs shall be actively promoted.
(ii) The establishment of FIEs by foreign investors that contribute capital using renminbi from overseas shall be promoted. Taking into consideration the experience from the pilot project of the Pudong New Area, the investment in and establishment of Sino-foreign equity and cooperative joint ventures by Chinese natural persons shall be expanded to the entire municipality. The increase in capital using claims and establishment of partnerships by FIEs shall be supported.
Related legislation: State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment, Apr 6 2010, CLP 2010 No.4 p.43
clp reference:2300/11.12.01/SHpromulgated:2011-12-01
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now