CHINA LEGAL UPDATE

27 January 2014

IN THIS ISSUE ZHONG LUN NEWS

Philip Zhang, a partner in Zhong

State Council Relaxes Outbound Investment Approval Lun’s New York Office, was Requirements appointed as Counsellor to the President of the Union

New Amendments to Company Law Internationale des Avocats (“UIA”). (read more. . . .)

MOFCOM Further Liberalizes RMB Foreign Direct Investment

Zhong Lun Law Firm and its Hong

MOFCOM Integrates Supervision of Foreign and Domestic Kong associated firm Boughton

Financial Leasing Enterprises Peterson Yang Anderson (BPYA) are delighted to announce the addition of Basil Hwang as a

Draft Amendments to Food Safety Law Circulated Partner in the office. (read more. . . .)

Hong Kong Enacts New Companies Ordinance

Hong Kong Lawyer recently interviewed Robert Lewis, a partner

China Further Opens Value-added Telecommunications Sector in at Zhong Lun, to get an exclusive,

Shanghai Free Trade Zone “behind the scenes” look at how the new Practical Law China service

PBOC Permits RMB Settlement for Foreign Investment in was born. (read more . . . .)

Domestic Financial Institutions

T.K. Chang, a partner in the New

Events and Presentations York Office of Zhong Lun Law (1) Zhong Lun Hosts Second International Securitization Seminar: Firm, recently gave an extensive Revolving Securitization Structure and Capital Relief interview to The China Press on (2) China Committee of ABA Section of International Law Holds important recent developments in international tax law. (read Seminar in New York (3) Zhong Lun Law Firm Office co-organized the Seminar more . . . .) Shanghai Free Trade Zone - Blueprint and Opportunity CONTACT US NEW LAWS AND REGULATIONS Email: [email protected]

State Council Relaxes Outbound Investment Approval Requirements

On 2 December 2013, the State Council issued a revised Catalogue of Investment Projects Requiring Government Verification (“2013 Catalogue”), which eased China’s burdensome approval requirements for most outbound investment projects. Previously, a domestic investor in an offshore project generally was required to obtain verification from the National Reform and Development Commission (“NDRC”), or the relevant local reform and development commission, to obtain verification of the letter of intent and About Zhong Lun framework agreements and the offshore target from the Ministry of Commerce (“MOFCOM”), or the relevant local commerce Zhong Lun is a leading Chinese department, and to carry out other procedures in regard to state full-service business law firm. owned assets and foreign exchange control. (read more . . .) The firm has more than 160 partners New Amendments to Company Law and 700 lawyers in ten offices: , Shanghai, , , On 28 December 2013, the Standing Committee of the National , , Hong Kong, , People's Congress (“NPC”) enacted significant amendments and New York. (“Amendments”) to the Company Law of the People’s Republic of China (“Company Law”), which will take effect 1 March 2014. The Practice areas include: Amendments abolish the longstanding minimum capitalization Banking and finance requirements in the Company Law, as well as the corresponding Competition/antitrust requirements on in-kind capital contributions, the amount and timing Compliance: anti-corruption/ for contributions to registered capital, capital verification, and the white collar crime registration of paid-in-capital, for most limited liability companies and Construction companies limited by shares. (read more . . .) Corporate/M&A Debt and equity capital MOFCOM Further Liberalizes RMB Foreign Direct Investment markets Dispute resolution On 3 December 2013, the Ministry of Commerce (“MOFCOM”) Employment issued the Notice on Issues Relating to Renminbi Foreign Direct Hotels and hospitality Investment (“Notice 87”), which took effect on January 01, 2014 and Intellectual property simultaneously repealed two prior rules on Renminbi foreign direct International trade investment (“RFDI”). (read more . . .) Investment funds Outbound investment MOFCOM Integrates Supervision of Foreign and Domestic Private client and trusts Private equity Financial Leasing Enterprises Projects and infrastructure Real estate The Ministry of Commerce (“MOFCOM”) issued the Measures for the Restructuring and insolvency Supervision and Administration of Financial Leasing Enterprises Securitization/structured (“Circular 337”), which took effect on 1 December 2013. Circular finance 337 replaces separate rules that stipulated different criteria for the Tax supervision of foreign invested and domestic invested financial Telecommunications, media leasing enterprises organized pursuant to the rules by MOFCOM. and entertainment (read more . . .)

Draft Amendments to Food Safety Law Circulated

On October 29, 2013, the Legislative Affairs Office of the State Council issued the Notice to Solicit Public Opinion on the Draft Amendments to the Food Safety Law of the People’s Republic of China (“Draft”). The revised law is expected to be enacted in 2014. The Draft clarifies the roles of the various government agencies involved in regulating food safety in China and confers primary responsibility for supervising food safety on the China Food and Drug Administration (“CFDA”), the successor to the State Food and Drug Administration. (read more . . .)

Hong Kong Enacts New Companies Ordinance

In July 2012 the Hong Kong Legislative Council enacted the new Companies Ordinance (“New Ordinance”) which will come into force in March 2014. The New Ordinance introduces many changes to the existing Companies Ordinance. (read more . . .)

China Further Opens Value-added Telecommunications Sector in Shanghai Free Trade Zone

Following the release of the Special Measures on the Administration of Foreign Investment Access to the China (Shanghai) Pilot Free Trade Zone (Negative List) last Fall, on 6 January 2014, the Ministry of Industry and Information Technology (“MIIT”) and the Shanghai Municipal People's Government jointly issued the Opinions on Further Opening Value-added Telecommunications Services in China (Shanghai) Free Trade Zone (the “Opinions”), which confirm and further clarify the trial liberalization of foreign investment in certain sections of the value-added telecommunications services (“VATS”) sector in the China (Shanghai) Pilot Free Trade Zone (“SFTZ”). (read more . . .) PBOC Permits RMB Settlement for Foreign Investment in Domestic Financial Institutions

On 23 September 2013, the People's Bank of China (“PBOC”) issued the Notice of the People's Bank of China on the Renminbi Settlement of Investments in Domestic Financial Institutions by Foreign Investors (“Notice”) to facilitate the use of Renminbi (“RMB”) for the cross-border settlement of foreign investment in domestic financial institutions, thereby further expanding the channels for RMB to flow back to China. (read more . . .)

EVENTS AND PRESENTATIONS

Zhong Lun On 11 November 2013, Zhong Lun held its Hosts Second second international securitization seminar, International “Revolving Securitization Structure and Securitization Capital Relief,” this time in association with Seminar: Clifford Chance. Over one hundred Revolving professionals attended this year’s closed door Securitization seminar, including representatives of over 30 Structure and foreign and domestic banks, securities Capital Relief companies, trust companies, financial leasing companies and other financial institutions, as well as accounting firms, rating firms and the research center of the CSRC. (read more . . .)

China On 9 January 2014, the China Committee of Committee of the American Bar Association Section of ABA Section of International Law held a seminar in New York International City on the current state of, and recent Law Holds improvements in, China’s intellectual property Seminar in New legal framework. This is the first in a series York of seminars that the China Committee will be conducting in the New York metropolitan area on topical legal issues involving China. Philip Zhang, a partner in Zhong Lun’s New York office, is co-chairing the seminars. (read more . . .) Zhong Lun Law On January 11 and 12, 2014, the Seminar Firm Shanghai named Shanghai Free Trade Zone - Blueprint Office and Opportunity, which was organized by co-organized International Law School of China University the Seminar of Political Science and Law and Wenzhou Shanghai Free Chamber of Commerce of Shanghai Trade Zone - Federation of Industry and Commerce and Blueprint and co-organized by Zhong Lun Law Firm Opportunity Shanghai Office, was held in Kunshan, Jiangsu Province. (read more . . .)

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