Corporate Governance

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

New draft Regulations will allow companies listed in China to offer stock ownership plans that could increase staff retention, but without additional incentives employees may be reluctant to participate

Foreign-invested partnerships have been around for two years and are starting to become more attractive as investors seek alternative vehicles. The structure is easy to set up and offers unparalleled tax benefits, but investors should be cautious of their liabilities

Futures companies allowed to tap into the wealth management business.

Private capital encouraged for the establishment of Sino-foreign cooperative joint schools.

A single private insurance shareholder may hold a stake of more than 20%.

The economic slowdown has caused many WFOEs to shut down leaving bad debt. Under Chinese law, what are the liabilities for managers, directors and the shareholders?