Corporate Governance

PRC holding company structures are evolving as China¡¦s economy becomes more sophisticated and as foreign companies reorient their China strategies. What changes have been introduced by recent regulations?

The Rules aim to maintain order in the securities markets. Transfer of non-tradable shares of listed companies must be handled by stock exchanges and in a centralized, uniform manner by Shanghai Stock Exchange, Shenzhen Stock Exchange, and the China Securities Depository and Clearing Corporation Ltd.

After many years of anticipation and false starts, the PRC51s first comprehensive franchising legislation, the Administration of Commercial Franchising Procedures, was finally issued by the Ministry of Commerce (MOFCOM) with effect from February 1 2005.1

The Procedures aim to create norms for commercial franchising activities. It covers issues such as franchise parties, franchise agreements, advertising, information disclosure, and foreign-invested entities.

The Provisions aim to encourage foreign investors to invest in China and import Foreign advanced technology and management expertise. They shall apply to investors from Taiwan, Hong Kong and Macao who invest in the establishment of companies with an investment nature in China.

PRC holding company structures are evolving as China¡¦s economy becomes more sophisticated and as foreign companies reorient their China strategies. What changes have been introduced by recent regulations?

Promulgated: November 3 2004Effective: as of date of promulgationApplicability: The Procedures apply to fixed asset investment projects listed in the Investment…

Promulgated: December 1 2004Effective: January 1 2005Interpreting authority: China Insurance Regulatory Commission (CIRC)Main contents: Without the approval…

Promulgated: December 2 2004Effective: January 1 2005Interpreting authority: Ministry of CommerceApplicability: "Auction houses" refers to limited liability…