Capital Markets

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Linklaters Insights: MOFCOM issues rules on capital contribution to foreign invested enterprises with equity interests

19 November 2012

To promote foreign investment within China, MOFCOM has issued rules to allow both domestic and foreign investors to contribute equity interests in PRC companies to foreign invested enterprises by way of incorporation or subscription. While PRC law does contemplate the use of equity interests or shares of a PRC company for the purpose of capital contribution, this was not in practice commonly accepted by MOFCOM due to a lack of express regulatory guidance.

The full article is available on the Linklaters website.


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