Corporate Governance

The amended Law allows insurance companies to invest in bonds, stocks, securities investment fund shares and immovable property.

Capital contribution in the form of equity gets its official go-ahead.

A new era of differentiated regulation for insurance companies.

Before starting any programme of mass lay-offs in China, companies must be aware of the legal issues and the appropriate procedures to follow. By Nancy Sun and Kirsten Gao, Minter Ellison, Shanghai.

The Shanghai government has announced a set of incentives to attract more multinational companies to establish their headquarters in the city. By Laura Yuan, King & Wood.

Foreign companies are contemplating how to restructure their loss-making or low-profit China operations. There are several good options available, and several unwise choices, too. By Ghislain de Mareuil and Julie Tong, DLA Piper, Shanghai.

New measures formalise and streamline the process for making capital contributions using equity, although they may raise approval issues for foreign-invested enterprises.

The total of the amount of capital contribution in the form of valuated equity and of capital contribution in the form of other valuated non-monetary property by all of the shareholders may not exceed 70% of the registered capital of the investee company.

Information on foreign assets and liabilities to be included in annual reports