Features & Analyses

New sectors are expected to open in 2009

Doubts over extent of tech sector access

Closer scrutiny of big deals

New sectors are expected to open in 2009

Temporary local rules will fill the gaps

China once welcomed foreign exchange inflows; now, hot money is threatening its developing economy. To control the flow of trade funds, the regulator has set requirements for compliance with rules on advance payments and deferred receipt of payments. The new rules could lead to tax losses and fines for exporters. By David Wang, Chris Yang and Chris Chen, Broad & Bright Shanghai Office.

A new Circular makes it easier for foreign investors to get approval for the conversion of their unlisted shares into B-shares. This may finally render non-listed foreign-investment shares in these issuers obsolete. By Heiner Braun and Miles Ma, Freshfields Bruckhaus Deringer, Shanghai.

A sweeping VAT reform takes place in China on January 1 2009. It will benefit many domestic companies but could block the cash-flow of some foreign invested enterprises, removing advantages enjoyed under the old tax regime. By Joanna Law.

Worldwide, regulators are restricting margin trading and short selling. But China is about to allow securities companies to engage in these types of business for the first time. The new scheme will be tightly controlled and small in scale. By Phil Taylor.