Corporate Governance

New Measures have simplified the regime for private funds in China and enhanced the CSRC's authority. But key issues are left unresolved and confusion over the tripartite regulatory system remains a problem

Policies relaxed to make M&A easier.

Policies relaxed to make M&A easier.

Enterprises not complying with information publication requirements will be blacklisted.

Enterprise published information will be checked randomly by SAIC.

The Circular broadens the meaning of "special purpose vehicle" from having financing as its objective to investment and financing as its objectives.

More foreign-invested projects have been removed from the Shanghai FTZ negative list.

SAFE has replaced outdated rules regarding offshore special purpose vehicles with a new Circular that expands funding sources, eases registration burdens and covers equity incentive plans. But the benefit to cross-border transactions depends on implementation, say Haiwen & Partners lawyers

Strategies include undertaking a full risk assessment, conducting comprehensive due diligence, establishing adequate contractual protections, developing proper monitoring procedures and designing and implementing a thorough compliance system