State-owned Assets Supervision and Administration Commission of the State Council, Guiding Opinions on Actively Introducing Private Investment in the Reform and Re-organisation of State-owned Enterprises

Issued: May 23 2012

Main contents: Where a private investor participates in the reform and re-organisation of state-owned enterprises (SOEs), it may contribute capital in cash, or in other formats permitted by laws and administrative regulations, such as physical goods, intellectual property rights and land use rights (Article 6). They may participate in such reform and re-organisation in the form of equity investment, equity acquisition, subscription for convertible bonds and lease financing (Article 7). A private investor may establish an equity investment fund jointly with another private investor or an SOE to participate in the reform and re-organisation of the SOEs, to jointly invest in strategic emerging industries and to engage in overseas investment (Article 8).

Related legislation: State Council, Several Opinions on Encouraging and Guiding the Healthy Development of Investments from the Private Sector, May 7 2010, CLP 2010 No.5 p.33; and General Office of the State Council, Circular on the Division of Labour for the Key Tasks of Encouraging and Guiding the Healthy Development of Investments from the Private Sector, July 22 2010