Corporate Governance

After liquidation, a creditor of a wholly individually-owned enterprise may still assert its rights against the investor in respect of the outstanding portion of its claim.

Hong Kong and Macao investors are allowed to set up wholly-owned medical institutions in the mainland.

Mergers and acquisitions involving material asset reorganisation will be subject to greater scrutiny under new Regulations, which will increase due diligence costs for businesses in China

Shenzhen offers awards up to Rmb50 million for new headquarters.

Disclosure in annual reports simplified.

Existing regional headquarters of multinational corporations in Shanghai that are upgraded to Asia regional, Asia-Pacific regional or larger regional headquarters may be eligible for one-time assistance of Rmb3 million.

The equity of real property enterprises, foreign holding companies, foreign-invested venture capital investment enterprises and foreign-invested private equity enterprises is not allowed to be used for investment in another foreign-invested enterprise.

The Shanghai Municipal Government has released Opinions encouraging multinationals to set up regional headquarters there, but will this cause tension with Beijing, which is expected to respond with a counter offer

The variable interest equity (VIE) structure has long been used by foreign investors wishing to invest in China's prohibited or restricted industries, but an investigation into New Oriental Group has highlighted issues with the structure and led to calls to fully-open foreign investment