Legislation roundup: Regional investment, bond offerings and highway tolls
NDRC and MOFCOM have updated the catalogue on investment in central and western regions. NDRC has also produced a circular on enterprise bond offerings while the Ministry of Transport has circulated draft regulations on highway tolls
Foreign investment
National Development and Reform Commission and Ministry of Commerce, Catalogue for Foreign Investment in the Dominant Industries of the Central and Western Regions (2013 Revision)
More labour intensive (manufacture of digital television and energy saving refrigerators) and service sector (development and application of the Internet of Things and wireless internet) projects are added to the revised Catalogue. The manufacture of whole vehicles, which has been removed from the encouraged category in the Foreign Investment Industrial Guidance Catalogue (Amended in 2011), is now included in this revised Catalogue for central and western regions.
See the full translation.
Further reading
Foreign Investment Industrial Guidance Catalogue (Amended in 2011), Feb 2011
How Chengdu is using IP to attract foreign investment, May/Jun 2013
|Capital markets
General Office of the National Development and Reform Commission, Circular on Further Improving the Review of Enterprise Bond Offerings
When reviewing the applications for enterprise bond offerings, the NDRC will categorise them into applications under:
(1) accelerated and simplified review, such as major state projects under construction or succeeding projects, state aircraft projects, strategic new industries, energy conservation and discharge reduction projects, comprehensive environmental cleanup projects and ecological protection projects;
(2) strict review, such as projects with surplus production capacity, or that create high pollution or consume a lot of energy as well as enterprises whose credit ratings are relatively low, debt ratios are high or operations are not compliant; and
(3) review that would appropriately control the scale and pace, namely all other types of applications.
See the digest for more details.
Further reading
Measures for the Administration of the Offering and Underwriting of Securities (Revised), Nov 2010
|Transport
Ministry of Transport, Regulations for the Administration of Tolled Highways (Amendment Draft for Comments)
The Draft suggests that if the lawful earnings of a tolled highway are affected by a state's free highway policy, the term for toll collection may be appropriately extended as compensation. The Draft also suggests that the term for toll collection may not exceed 25 years, or 30 years for state specified provinces, autonomous regions and municipalities directly under the central government in central and western regions.
See the digest for more details.
Further reading
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