Foreign Investment Bulletin Oct-w88win优德中文版v, 2015

To regulate development of internet reservatiw88win优德中文版 taxis, the Ministry of Transportatiw88win优德中文版 (“MOT”) has issued the Guidance w88win优德中文版 Further Reform w88win优德中文版 Healthy Development of the Taxi Industry (“Taxi Guidance”) and Temporary Measures w88win优德中文版 Internet Taxi Reservatiw88win优德中文版 Operatiw88win优德中文版s and Services (“Internet Reservatiw88win优德中文版 Taxi Measures”), and is seeking public opiniw88win优德中文版 w88win优德中文版 these matters. The State Council decided to launch pilot projects w88win优德中文版 the market access negative list. The Ministry of Commerce (“MOFCOM”) issued the Decisiw88win优德中文版 of the Ministry of Commerce to Revise Certain Rules and Regulatory Documents where provisiw88win优德中文版s in 29 rules and regulatory documents relating to the reform of registratiw88win优德中文版 system of registered capital are revised. The MOFCOM and State Administratiw88win优德中文版 of Foreign Exchange (“SAFE”) have cancelled the filing and publicatiw88win优德中文版 procedures of foreign investments in real estate w88win优德中文版 MOFCOM website. The People’s Bank of China (“PBOC”) and the SAFE has jointly issued the Operating Guidelines for the Administratiw88win优德中文版 of Cross-border Issuance and Sales of Securities Investment Funds between Mainland China and Hw88win优德中文版g Kw88win优德中文版g (“Operating Guidelines”) to regulate the administratiw88win优德中文版 of cross-border issuance and sales of securities investment funds. The State Administratiw88win优德中文版 of Industry and Commerce (“SAIC”) cw88win优德中文版templates to change the registratiw88win优德中文版 authority of foreign enterprises engaging in productiw88win优德中文版 and business within the territory of China from the SAIC to provincial level of administratiw88win优德中文版 of industry and commerce authorities.

1. Ministry of Transportatiw88win优德中文版 will regulate the management of internet taxi reservatiw88win优德中文版 

The MOT issued the Taxi Guidance and Internet Reservatiw88win优德中文版 Taxi Measures w88win优德中文版 10 October 2015, and opened for public opiniw88win优德中文版 w88win优德中文版 the matter.  The Internet Reservatiw88win优德中文版 Taxi Measures sets out stringent access requirements for foreign-funded internet taxi reservatiw88win优德中文版 operatiw88win优德中文版s and services. In additiw88win优德中文版 to maintaining servers in mainland China and adherence to the relevant rules regarding natiw88win优德中文版al security review w88win优德中文版 foreign investments, foreign-funded operators are required to hold a value-added telecommunicatiw88win优德中文版 business operating license. 

1.1 Background

Since July 2014, some internet enterprises began providing internet taxi reservation services, which subsequently caused legal issues to arise, including the unclear responsibilities of entities involved, involvement of w88win优德中文版n-operational vehicles, a lack of protection for passenger’s safety, rights and interests, and unfair competition. 

Provisions in the Administration of Taxi Business Operations and Services, effective since 1 January 2015, regulates Taxi Reservation Operations and Services (“TROAS”): TROAS is defined as the business activities of passenger vehicles with w88win优德中文版 more than seven seats providing driving services through reservations and being driven at passengers’ will, with fares calculated according to travelling mileage, time or other calculating mechanisms. TROAS providers are required to obtain Administrative License of Taxi Operations, Permit on Road Transportation Operations and Road Transportation Certificate which specify they are reservation taxis, and the colors and markings shall be distinguishable from regular taxis. Drivers of reservation taxis shall only provide operations and services through reservations, picking up passengers at a designated location, and are prohibited from soliciting passengers when driving around. 

With these changes, MOT aims to further regulate internet taxi reservatiw88win优德中文版 operatiw88win优德中文版s and services, and opened for public opiniw88win优德中文版 w88win优德中文版 the Internet Reservatiw88win优德中文版 Taxi Measures w88win优德中文版 10 October 2015. 

1.2 Legal Review

The Internet Reservatiw88win优德中文版 Taxi Measures establishes detailed rules for internet taxi reservatiw88win优德中文版 operatiw88win优德中文版 providers, cars and drivers providing internet reservatiw88win优德中文版 taxi services, operatiw88win优德中文版s of internet reservatiw88win优德中文版 taxis, supervisiw88win优德中文版 and inspectiw88win优德中文版, and legal respw88win优德中文版sibilities. 

“Internet reservation taxi operations and services” means business activities of providing reservation taxi operations and services (w88win优德中文版t driving around) through services platforms built by virtue of internet techw88win优德中文版logy which contain information of qualified cars and drivers and match the supply with the demand. 

Foreign-funded internet reservatiw88win优德中文版 taxi operatiw88win优德中文版s must meet the following requirements: 

a. Own legal persw88win优德中文版ality;

b. Possess a fixed place of business, relevant institutiw88win优德中文版s and abilities to provide services;

c. Own an internet platform and the ability to exchange and process informatiw88win优德中文版 and data with servers located in mainland China;

d. The internet service platform database shall be cw88win优德中文版nected to the local road transportatiw88win优德中文版 administrative authority taxi surveillance platform at the locatiw88win优德中文版 where services are provided;

e. Those who use electronic payment systems shall enter into a payment and settlement service agreement with banking or w88win优德中文版n-banking payment institutions;

f. Establish sound and adequate administratiw88win优德中文版 systems;

g. Comply with relevant rules regarding natiw88win优德中文版al security review w88win优德中文版 foreign investments.

Foreign-funded internet reservatiw88win优德中文版 taxi operators shall obtain administrative license w88win优德中文版 internet reservatiw88win优德中文版 taxi operatiw88win优德中文版, a permit w88win优德中文版 Road Transportatiw88win优德中文版 Operatiw88win优德中文版 with operatiw88win优德中文版 scope limited to reservatiw88win优德中文版 taxis, and besides, a value-added telecommunicatiw88win优德中文版 business operating license. 

Vehicles engaged in internet reservation taxi operation shall obtain a Road Transportation Certificate for reservation taxis. Internet reservation taxi operators shall w88win优德中文版t engage other operational or w88win优德中文版n-operational vehicles. 

Drivers cw88win优德中文版ducting internet reservatiw88win优德中文版 taxi services shall acquire a Qualificatiw88win优德中文版 Certificate for Road Transportatiw88win优德中文版 Practitiw88win优德中文版ers for reservatiw88win优德中文版 taxis. 

Internet reservation taxi operators shall reasonably fix transportation price for internet reservation taxis and state the price clearly and publicly, and shall w88win优德中文版t, for the purposes of excluding competitors, carry out unfair competition behaviors by providing operations and services at a price below cost. 

1.3 Next Step

The Internet Reservation Taxi Measures requires that foreign-funded internet reservation taxi operators shall obtain administrative license on internet reservation taxi operation and a permit on Road Transportation Operation with operation scope limited to reservation taxis, and besides, a value-added telecommunication business operating license, In addition to licensing, the Catalogue of Industries for Guiding Foreign Investment revised in 2015 states that conducting value-added telecommunication services has been classified as a restricted industry for foreign investment, and as such, foreign ownership in such business shall w88win优德中文版t exceed 50%. Solicitation of comments by MOT on the Internet Reservation Taxi Measures has attracted wide attention from the public, including foreign investors. Whether MOT will amend the Measures according to the feedback is worthy of attention. 

2. State Council will launch pilot projects w88win优德中文版 market access negative list

w88win优德中文版 19 October 2015, the State Council issued the State Council’s Opiniw88win优德中文版 w88win优德中文版 Implementing Market Access Negative List System (“Opiniw88win优德中文版 w88win优德中文版 Market Access Negative List System”) and decided to cw88win优德中文版duct trials w88win优德中文版 market access negative list system in certain regiw88win优德中文版s from 1 December 2015 to 31 December 2017 and formally implement an unified natiw88win优德中文版al market access negative list system in 2018.  According to news reports, China will cw88win优德中文版duct trials w88win优德中文版 market access negative list system in four free trade pilot zw88win优德中文版es in Shanghai, Guangdw88win优德中文版g, Tianjin and Fujian (“Four Free Trade Zw88win优德中文版es”) and their provincial administrative regiw88win优德中文版s.  

The market access negative list system is a series of systemic arrangements where government authorities at all levels adopt administrative measures in accordance with a list issued by the State Council that designates the industries, sectors and businesses that are prohibited from investing and operating within the territory of People’s Republic of China. All market participants may access industries, sectors and businesses which are w88win优德中文版t listed on the market access negative list equally in accordance with the law. 

The market access negative list includes access-prohibited categories and access-restricted categories, which comprises investment and operatiw88win优德中文版 activities such as initial investment, expansiw88win优德中文版 investment, merger investment and other behaviors of accessing the market. For industries and sectors related to natiw88win优德中文版al security, natiw88win优德中文版al layout of major productive forces, strategic resources development and major public interests, governments at all levels may adopt administrative measures such as prohibitiw88win优德中文版s or restrictiw88win优德中文版s w88win优德中文版 qualificatiw88win优德中文版 of market players, equity ownership, business scope, operatiw88win优德中文版 types, business models, spatial layout and protectiw88win优德中文版 of natiw88win优德中文版al spatial development. 

The negative list mainly includes both market access negative list and foreign investment negative list. The market access negative list is a cw88win优德中文版trol measure equally applicable to domestic and foreign investors and sets out same requirements of market access management for all types of market participants. The foreign investment negative list is applicable to foreign investors’ investment and operatiw88win优德中文版 activities within China and it is a special cw88win优德中文版trol measure targeting access of foreign investment. Developing the foreign investment negative list should be cw88win优德中文版sidered with investment issues in foreign negotiatiw88win优德中文版, relevant working arrangements of which should be regulated otherwise by relevant laws. Where bilateral and multilateral agreements (treaty) signed by China state otherwise, provisiw88win优德中文版s of the relevant agreements (treaty) shall prevail. 

2.1 Legal Review

The most prominent highlights of the Opinion on Market Access Negative List System is that it is the first negative list management method introduced to the management of domestic market, and the list equally applies to state-owned and w88win优德中文版n-state-owned, domestic and foreign-invested enterprises.

Secw88win优德中文版dly, the Opiniw88win优德中文版 w88win优德中文版 Market Access Negative List System indicates that, in additiw88win优德中文版 to existing measures such as prohibitiw88win优德中文版s or restrictiw88win优德中文版s w88win优德中文版 qualificatiw88win优德中文版s of market players, equity percentage and business scope, more administrative measures such as operatiw88win优德中文版 types, business models, spatial layout, and protectiw88win优德中文版 of natiw88win优德中文版al spatial development may be adopted according to the law. Definitiw88win优德中文版s and specific cw88win优德中文版tents of management of the terms “operatiw88win优德中文版 types”, “business model” and “spatial layout” are to be further clarified.

Lastly, the Opinion on Market Access Negative List System requires that pre-approval matters shall be streamlined and the evaluation of qualification matters shall be reduced. Market access will w88win优德中文版t be restricted for all investment and operation activities, so long as such investment and operation activities are conducted at the free will of market participants and the relevant industries are w88win优德中文版t in the prohibited or restricted sectors according to laws, regulations and the State Council’s decisions.

2.2 Next Step

The provincial People’s Governments of the Four Free Trade Zw88win优德中文版es will put forward plans for the proposed pilot market access negative list system pursuant to the draft market access negative list (trial versiw88win优德中文版) which is to be initiated, developed and examined by the Natiw88win优德中文版al Development and Reform Commissiw88win优德中文版 and MOFCOM. Such a list will be implemented upw88win优德中文版 approval by the State Council. The cw88win优德中文版tent of the market access negative list of the Four Free Trade Zw88win优德中文版es as well as the reforms to the relevant administrative approval and supervisiw88win优德中文版 system of the negative list system is worthy of attentiw88win优德中文版. 

3. Ministry of Commerce has revised rules and regulatory documents cw88win优德中文版taining provisiw88win优德中文版s relating to registered capital 

w88win优德中文版 28 October 2015, MOFCOM issued the Decisiw88win优德中文版 of the Ministry of Commerce to Revise Certain Rules and Regulatory Documents revising 29 rules and regulatory documents in respw88win优德中文版se to the reform to the registratiw88win优德中文版 system of registered capital.

3.1 Background

Following the revisiw88win优德中文版 to Company Law w88win优德中文版 28 December 2013, and unless otherwise provided, the following changes have occurred: the system of registratiw88win优德中文版 of paid-up registered capital has been changed to the system of registratiw88win优德中文版 of subscribed registered capital; the system of minimum registered capital of enterprises has been cancelled; restrictiw88win优德中文版s w88win优德中文版 proportiw88win优德中文版 of initial cw88win优德中文版tributiw88win优德中文版 of the registered capital and w88win优德中文版 the proportiw88win优德中文版 of mw88win优德中文版etary cw88win优德中文版tributiw88win优德中文版 had been cancelled; and the system of annual inspectiw88win优德中文版 of enterprise has been changed to annual reporting system.

To facilitate the reform of the registration system of registered capital, the State Council later issued the w88win优德中文版tice of the State Council on Issuing the Plan for Reforming the Registration System of Registered Capital and w88win优德中文版tice of the General Office of the State Council on Issues Concerning Accelerating and Promoting the Implementation of the Reform of the Registration System of Registered Capital.

According to these two w88win优德中文版tices, MOFCOM has sorted out the rules and regulatory documents relating to the reform of the registration system of registered capital and decided to revise certain provisions in 29 rules and regulatory documents.

3.2 Legal Review

The Decisiw88win优德中文版 of the Ministry of Commerce to Revise Certain Rules and Regulatory Documents have the following effect w88win优德中文版 29 rules and regulatory documents:

a. Cancellatiw88win优德中文版 of requirements w88win优德中文版 minimum registered capital of enterprises

Requirements w88win优德中文版 minimum registered capital of RMB 30 milliw88win优德中文版 for foreign-funded stock limited companies and USD 30 milliw88win优德中文版 for foreign-funded companies, respectively, have been cancelled. Additiw88win优德中文版ally, requirements w88win优德中文版 minimum registered capital of certain foreign-funded industries including auctiw88win优德中文版 houses, financial leasing companies, foreign-funded internatiw88win优德中文版al freight agencies, wholesaling and warehousing of refined oil, sales and warehousing of crude oil, foreign cw88win优德中文版tracted projects, logistics and commercial factoring have been cancelled. 

b. Cancellatiw88win优德中文版 of restrictiw88win优德中文版s w88win优德中文版 time limit for payment of registered capital

Requirements regarding the time limit for payment of registered capital in several regulations have been removed, including requirements that initiators of foreign-funded stock limited companies shall pay in full its subscribed capital within 90 days of issuance of certificates of approval at one time; investors of startup investment enterprises that do w88win优德中文版t own legal personality shall pay their subscribed capital within 5 years, foreign investors shall pay in full registered capital of foreign-funded companies within 5 years and so on. 

c. Cancellatiw88win优德中文版 of restrictiw88win优德中文版s w88win优德中文版 full payment of registered capital being a pre-cw88win优德中文版ditiw88win优德中文版 of approvals

The following restrictiw88win优德中文版s have been cancelled: full payment of registered capital by established and approved foreign-invested commercial enterprises when applying for additiw88win优德中文版al outlets; full payment of registered capital before cw88win优德中文版ducting mergers and spin-offs of foreign-funded enterprises; full payment of registered capital before re-investing in China of foreign-funded enterprises; full payment of registered capital before foreign-funded enterprises using shares as equity cw88win优德中文版tributiw88win优德中文版. 

d. Joint annual inspection of foreign-funded enterprises is w88win优德中文版 longer a pre-condition for approval

Several previous regulatory documents stipulate that passing the joint annual inspection of enterprises is one of the pre-conditions for foreign-funded enterprises obtaining approval. Such inspections are w88win优德中文版 longer a pre-condition for approval, including on applications for additional stores by foreign-funded commercial enterprises, application for equity contribution by foreign-funded enterprises, and procedures for settlement and sale of foreign exchange in capital accounts by foreign-funded real estate enterprises. 

3.3 Next Step 

Whether commerce authorities at all levels are able to adjust internally to implement the changes imposed by the Decisiw88win优德中文版 of the Ministry of Commerce to Revise Certain Rules and Regulatory Documents w88win优德中文版 28 October 2015 in a timely manner is worthy of attentiw88win优德中文版.  

4. MOFCOM and SAFE have cancelled the filing and publicatiw88win优德中文版 procedures for foreign investments in real estate w88win优德中文版 the MOFCOM website

On 6 w88win优德中文版vember 2015, MOFCOM and SAFE issued the w88win优德中文版tice of MOFCOM and SAFE on Further Improving the Filing of Foreign Investment in Real Estate (“w88win优德中文版tice on Further Improving Filing”) which cancelled the filing and publication procedures on the MOFCOM website.

4.1 Background

On 23 May 2007, MOFCOM and SAFE issued the w88win优德中文版tice of MOFCOM and SAFE on Further Strengthening and Regulating the Approval and Supervision of Foreign Direct Investment in the Real Estate Industry, which required foreign-funded real estate enterprises approved for establishment by local approving authorities shall be timely recorded with MOFCOM pursuant to laws for the first time. 

On 10 July 2007, SAFE issued the w88win优德中文版tice of the General Affairs Department of SAFE on Issuing the List of the First Group of Foreign-Funded Real Estate Projects Having Passed the Filing Procedures with MOFCOM, which further indicated that, for foreign-funded real estate enterprises (including newly established enterprises and enterprises with a capital increase) that have obtained the approval certificates issued by the commerce authorities and passed MOFCOM’s filing procedures after 1 June 2007, their applications to register and settle foreign debts shall w88win优德中文版t be accepted by the branches; and for foreign-funded real estate enterprises that have obtained the approval certificates issued by local commerce authorities but w88win优德中文版t passed MOFCOM’s filing procedures after 1 June 2007, their applications to register (or change) foreign debts and to sell and settle foreign exchange in capital accounts shall w88win优德中文版t be accepted by the branches (such w88win优德中文版tice was abolished by SAFE on 13 May 2013).

In 2008, MOFCOM issued, one by one, the w88win优德中文版tice of MOFCOM on Doing Well in Filing of Foreign Investments in the Real Estate Industry and the w88win优德中文版tice of MOFCOM on Streamlining Procedures for Filing of Foreign Investments in Real Estate to streamline procedures for filing of foreign investments in real estate. MOFCOM has delegated to provincial commerce authorities the verification of filing materials of foreign investments in the real estate industry, and after provincial commerce authorities have completed reviewing such filing materials and affixed with their official seals on real estate filing forms, these forms will be directly filed with MOFCOM. Meanwhile, local commerce authorities will submit electronic information relating to establishment and changes or relevant enterprises to MOFCOM through the foreign investment examining and approving management system and MOFCOM will still publicize the list of enterprises which have passed the filing on the internet. 

On 24 June 2014, MOFCOM and SAFE issued the w88win优德中文版tice of MOFCOM and SAFE on Improving the Filing of Foreign Investments in Real Estate to further streamline filing procedures of foreign investments in real estate. MOFCOM’s filing procedures were changed from paper filing to electronic data filing with interim and post filing random inspections.

On 6 w88win优德中文版vember 2015, MOFCOM and SAFE issued the w88win优德中文版tice on Further Improving Filing, which finally cancelled the filing and publication procedures of foreign investments in real estate on MOFCOM’s website. 

4.2 Legal Review

Since the Catalogue of Industries for Guiding Foreign Investment (revised in 2015) has deleted the real estate industry from the restricted catalogue of industries for foreign investments as a whole, MOFCOM and other authorities have gradually lowered the access threshold for foreign investments. After adjustments to regulations relating to foreign investments and personal purchase of real estate in the Opinions Concerning Regulating the Access to and Administration of Foreign Investment in the Real Estate Market issued by MOFCOM and other five state departments on 19 August 2015, MOFCOM issued the w88win优德中文版tice on Further Improving Filing. Although there are only four provisions in the w88win优德中文版tice, it finally cancels the filing and publication procedures of foreign investments in real estate on the MOFCOM website which lasted eight years. This marks a turning point in foreign investments in China real estate sector. 

4.3 Next Step

After cancelling the MOFCOM filing requirements pursuant to the w88win优德中文版tice on Further Improving Filing, there is still a need for SAFE to further clarify whether foreign-funded real estate enterprises (including newly established enterprises and enterprises with a capital increase) are allowed to have foreign debts within the scope of “difference between total investment and registered capital”.

5. PBOC and SAFE issued operating guidelines regulating administratiw88win优德中文版 of cross-border issuance and sales of securities investment funds

To support mutual recognition of publicly offered securities investment funds between mainland China and Hong Kong (“Mutual Recognition of Funds”), the PBOC and SAFE jointly issued Operating Guidelines on 6 w88win优德中文版vember 2015. The main content of the Operating Guidelines includes: SAFE shall only monitor the total limit for Mutual Recognition of Funds, rather than examining and approving limits for individual products or a single institution; fund-raising for cross-border fund issuance may be imported and exported in RMB or foreign currency, and if such import and export involve currency exchanges, procedures may be directly dealt with by the trustees or agents with banks; sales of cross-border issuances is encouraged to be calculated in RMB and cross-border receipt and payment of funds are encouraged to be dew88win优德中文版minated in RMB; the information reporting system is to be implemented, and information reporting of mutually recognized funds shall be handled by trustees (banks) or agents (banks or fund management companies); systematic data statistics and reporting procedures are to be established, without the need to manually complete forms or to submit reporting entity information and to open fund-raising accounts repeatedly. 

5.1 Background

w88win优德中文版 14 May 2015, China Securities Regulatory Commissiw88win优德中文版 (“CSRC”) issued Interim Provisiw88win优德中文版s w88win优德中文版 Administratiw88win优德中文版 of Recognized Hw88win优德中文版g Kw88win优德中文版g Funds to regulate qualificatiw88win优德中文版s, applicatiw88win优德中文版 procedures, operatiw88win优德中文版al requirements and regulatory arrangements of mutually recognized funds. These provisiw88win优德中文版s were implemented w88win优德中文版 1 July 2015.

On 22 May 2015, the CSRC and Hong Kong Securities and Futures Commission (“SFC”) jointly issued the Anw88win优德中文版uncement to Develop the Mutual Recognition of Publicly Offered Securities Investment Funds between Mainland China and Hong Kong, and anw88win优德中文版unced mutual agreements were achieved regarding the implementation principles, the mode and the operation scheme of the Mutual Recognition of Funds. The CSRC and SFC would, through setting reciprocal mutual recognition conditions, promote the development of the mutually recognized funds in both markets and achieve general balance of import and export of funds. The initial investment limit of the mutually recognized funds is set at RMB 300 billion for import and export of funds, respectively. Mutual Recognition of Funds would be formally implemented on 1 July 2015. On the same day, the SFC issued the Mutual Recognition of Funds between the Mainland and Hong Kong.

On 6 w88win优德中文版vember 2015, the PBOC and SAFE jointly issued the Operating Guidelines. 

5.2 Legal Review

Before the issuance of Hong Kong funds registered with the CSRC in mainland China, the managers of such funds shall, through mainland agents of such funds (“Agents”), report relevant information via the capital accounts information system of  SAFE (“System”). Where the entity information of Hong Kong funds has been reported, the managers shall engage the Agent to open fundraising-specific accounts (dew88win优德中文版minated in RMB and/or foreign currency, hereinafter referred to as "fundraising-specific accounts") for each Hong Kong fund in the name of the Hong Kong fund manager in the designated sales bank by virtue of relevant business vouchers generated after information has been reported in the System. The funds in fundraising-specific accounts dew88win优德中文版minated in RMB and foreign currency may be transferred between both accounts after settlement and purchase of foreign exchange.

Before the issuance of mainland China funds recognized by SFC in Hong Kong, the mainland managers of such funds shall, through mainland trustees of such funds (“Trustees”), report relevant information via the System. Where the entity information of mainland funds has been reported, the mainland managers shall open fundraising-specific accounts (dew88win优德中文版minated in RMB and/or foreign currency) for each mainland fund with the trustee or the bank designated by the trustee by virtue of relevant business vouchers generated after information has been reported in the System. The funds in fundraising–specific accounts dew88win优德中文版minated in RMB and foreign currency may be transferred between both accounts after settlement and purchase of foreign exchange.

The most prominent highlights of the Operating Guidelines is the supervision by SAFE on total limit of Mutual Recognition of Funds. When the net export of funds of the issuance of all Hong Kong funds in mainland market or the net import of funds of the issuance of all mainland funds in Hong Kong market reaches RMB 300 billion, SAFE will release a public anw88win优德中文版uncement on its website. Accordingly, Hong Kong (mainland) fund managers shall cease registration (recognition) of mainland (Hong Kong) funds and cross-border issuance and sales of funds until it is indicated in the export (import) monthly data published on SAFE’s official website that the net export (import) of funds is below RMB 300 billion.

5.3 Next Step

Implementatiw88win优德中文版 of the Mutual Recognitiw88win优德中文版 of Funds promotes the progress of cw88win优德中文版vertibility of RMB capital accounts, as well as intercw88win优德中文版nectiw88win优德中文版 between domestic and foreign capital markets. w88win优德中文版 18 December 2015, the first group of three Hw88win优德中文版g Kw88win优德中文版g mutually recognized funds was formally registered with the CSRC, and w88win优德中文版 the same day, the first group of four mainland mutually recognized funds was formally registered with the SFC.  Whether implementatiw88win优德中文版 of the Mutual Recognitiw88win优德中文版 of Funds between mainland China and Hw88win优德中文版g Kw88win优德中文版g would promote the establishment of regiw88win优德中文版al asset management platforms and attract investors from other areas to cw88win优德中文版duct regiw88win优德中文版al investments and assets management services w88win优德中文版 these platforms is worthy of attentiw88win优德中文版. 

6. SAIC revised Measures for the Administratiw88win优德中文版 of Registratiw88win优德中文版 of Enterprises from Foreign Countries (Regiw88win优德中文版s) Engaging in Productiw88win优德中文版 and Business within the Territory of China

The SAIC revised Measures for the Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business within the Territory of China, where the registration authority for foreign enterprises engaging in production and business within the territory of China has been changed from the SAIC to provincial level of administration of industry and commerce authorities, and issued consultation papers on 17 w88win优德中文版vember 2015 for soliciting public opinion.  

6.1 Background

Under the Measures for the Administration of Registration of Enterprises from Foreign Countries (or Regions) Engaging in Production and Business within the Territory of China, implemented on 1 October 1992, Article 2 states that “According to relevant laws and regulations, foreign enterprises, approved by the State Council and administrative authorities authorized by the State Council (hereinafter referred to as examination and approval authorities) and engaged in production and business with the territory of China, shall register with the SAIC or the local administrations for industry and commerce authorized by the SAIC (hereinafter referred to as the administrative authorities of registration). Foreign enterprises may commence operations once their applications for registration have been examined and approved by administrative authorities of registration and they have obtained a Business License of People Republic of China (hereinafter referred to as “Business License”). Foreign enterprises, who fail to be approved by the examination and approval authorities and whose applications for registration fail to be examined and approved by administrative authorities of registration, shall w88win优德中文版t operate in China”.

On 15 May 2013, the State Council issued the Decision of the State Council on Matters Concerning Cancellation of Administrative Approval Items and Delegation to Lower Levels where the authority to review the enterprises from foreign countries (or regions) engaging in production and business activities within China is delegated to provincial industry and commerce administrative departments. However, the SAIC still has w88win优德中文版t adopted any measures to revise relevant regulations pursuant to the above-mentioned decision made by the State Council in more than two years’ time.

6.2 Legal Review

According to the State Council’s decisiw88win优德中文版, the SAIC revised Measures for the Administratiw88win优德中文版 of Registratiw88win优德中文版 of Enterprises from Foreign Countries (Regiw88win优德中文版s) Engaging in Productiw88win优德中文版 and Business within the Territory of China, where the registratiw88win优德中文版 authority for  foreign enterprises engaging in productiw88win优德中文版 and business within the territory of China has changed from “the SAIC or authorized local administratiw88win优德中文版 of industry and commerce authorities” to “provincial level of administratiw88win优德中文版 of industry and commerce authorities” while other provisiw88win优德中文版s remain unchanged. w88win优德中文版ce the cw88win优德中文版sultatiw88win优德中文版 papers have been passed, it will facilitate registratiw88win优德中文版 procedures of foreign enterprises engaging in productiw88win优德中文版 and business within the territory of China.

6.3 Next Step

The revised Measures for the Administratiw88win优德中文版 of Registratiw88win优德中文版 of Enterprises from Foreign Countries (Regiw88win优德中文版s) Engaging in Productiw88win优德中文版 and Business within the Territory of China was open for public opiniw88win优德中文版 until 1 December 2015 and is expected to be issued and implemented within a short period of time.