Foreign investors can now inject equity interest as capital with greater certainty

Foreign investors can now inject equity interest ...

China alert - Issue 21, November 2012

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 Foreign investors can now inject equity interest as capital with greater certainty

The Ministry of Commerce has issued Decree No. 8 to clarify the rules that govern how foreign investors may use equity interest in a company as capital injection in a foreign investment enterprise. This regulatory breakthrough has given foreign investors greater flexibility in respect of source of capital and reduces the regulatory and foreign exchange constraints for foreign investors.

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