Jurisdiction - China
Capital Markets
Orrick

29 September, 2012

 

CSRC To Amend The Rules For Establishing Foreign Invested Securities Companies.

 

 

 

On August 24, 2012, the China Securities Regulatory Commission (“CSRC”) issued the draft amendments to the Rules for the Establishment of Securities Companies with Foreign Equity Participation. The public was allowed to submit comments on the draft until September 22, 2012. Under the draft amendments, the cap of the aggregate (direct and indirect) shareholding ratio or ratio of rights and interests of foreign investors in a Sino-foreign equity securities company is increased from 33% to 49%. In addition, the amendments provide that, among all domestic shareholders of a Sino-foreign securities joint venture, there must be a domestic securities company which holds no less than 49% equity or rights and interests of the joint venture. In the case of a domestic securities company converted into a Sino-foreign securities joint venture, there must be a domestic shareholder which holds no less than 49% shares of the joint venture.

 

The full Chinese text of the draft amendment is available here.

 

 











For further information, please contact:

 

Elizabeth Cole, Partner, Orrick

ecole@orrick.com
 
Seung Chong, Partner, Orrick
schong@orrick.com

 

Veronica Lockyer, Orrick
vlockyer@orrick.com

 

Yan Zeng, Orrick
yzeng@orrick.com
 
 
 

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