What are the relevant laws and regulations on M&A？

Published on 2018-05-14
Time Rule Content
Before September1995 N/A No entity was legally allowed to transfer any corporate shares and state shares to foreign invested enterprises or foreign entities.
August 1999 Provisional Ordinance Concerning Acquisition of State-owned Enterprise by Foreigner No specific rules were published for detailed implementation although it was allowed for foreigners to buy state-owned enterprises.
November 2001 Circular on Some Issues Relating to Foreign Investment in Listed Companies Foreign invested share companies were allowed to issue A share and B share. Foreign enterprises were also allowed to buy state-owned shares not floated in capital market.
November 2001 Decision on Merger and Divesture of Foreign Invested Enterprises Some principles were established.
February 2002 Ordinance on Guidance of Foreign Investment

Instructive Industry Catalogue for Foreign Investment

 Encouraged industries were expanded.

More industries such as banking, insurance and trading, etc., were opened.

The investment percentages were increased and some industry restrictions were moved for investment in western area.
June 2002 Circular on Establishment of Joint Venture Securities Company

Circular on Establishment of Joint Venture Fund

 Foreign enterprises can invest in securities and fund industry.
October 2002 Measures on Acquisition of Listed Company It regulated the buyer and seller
March 2003 Provisional Ordinance on Acquisition of Local Company by Foreign Investors A serious of detailed measures were stipulated relating to valuation, registered capital, investment percentage, debt sharing, monopoly review and tax policies, etc.