In the news: Outbound investment explodes and Hong Kong firms to advise on PRC law
July 18, 2013 | BY
clpstaff &clp articles &China outbound investment reaches $84 billion in a report from UN Trade and Development Conference and Hong Kong firms may be allowed to merge and advise on PRC law in Guangdong
Outbound investment reaches $84 billion
China Daily reported that the country moved from sixth place to third in outward foreign direct investment last year, placing just behind Japan and the US. The data comes from the United Nations Conference on Trade and Development. The World Investment Report 2013 from the same organisation cited a survey where 60% of investment agencies ranked China as the most promising source of FDI.
The government has placed great emphasis on China outbound investment and with the total amount reaching $84 billion; its efforts are obviously working. It would be interesting to see how much of that investment was from private companies, which the government has also been trying to push into outbound investment. The space has been dominated by state-owned enterprises for years.
More from CLP:
Hong Kong firms may be allowed to advise on PRC law
Legal Week reported that Hong Kong law firms are soon to find out whether they will be permitted to advise on PRC law in the Qianhai Special Economic Zone. Hong Kong firms would have to merge with local firms and could only be located within the special area. The rules also apply to many of the international firms with local branches in Hong Kong.
This is not exactly different to the current system where foreign law firms engage domestic firms to carry out the activities which they cannot carry out under PRC regulations. The only difference is it will be a merger instead of two separate firms. Some foreign law firms may not go for it, at least in the beginning, as they might prefer the current system where they are not tied to a domestic firm, but only engage their services when necessary.
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