State-owned Assets Supervision and Administration Commission of the State Council, Tentative Measures for Regulation of Overseas Investments of Enterprises Directly under the Central Government

国务院国有资产监督管理委员会中央企业境外投资监督管理暂行办法

May 04, 2012 | BY

clpstaff &clp articles &

SOEs not to invest overseas in businesses other than their principal business.

Clp Reference: 2140/12.03.18 Promulgated: 2012-03-18 Effective: 2012-05-01

Promulgated: March 18 2012
Effective: May 1 2012

Applicability: For the purposes of these Measures, the term “overseas investment” means the act whereby an enterprise directly under the central government (an Enterprise) or a subsidiary at any level that is wholly owned by it or in which it has a controlling interest (a Subsidiary) invests in fixed assets, equity, etc. outside China or in the Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan (Article 2).

Main contents: In principle, an Enterprise may not engage in investment in businesses other than its principal business. If such an investment genuinely needs to be made due to a special reason, the approval of the State-owned Assets Supervision and Administration Commission of the State Council (Sasac) shall be required. The Enterprise shall submit the following approval materials to Sasac:

(1) a request for instructions on applying for approval to invest in a business other than its principal business;

(2) the relevant decision documents of the Enterprise concerning the non-principal business investment project;

(3) relevant documents, such as the feasibility study report and due diligence for the investment project;

(4) a risk assessment, risk control and risk prevention report for the investment project; and

(5) other necessary materials (Article 10).

clp reference:2140/12.03.18promulgated:2012-03-18effective:2012-05-01

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