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How to understand a foreign trader to invest company direct financing
From;    Author:Stand originally

The 3rd times Sino-US strategy economy speaks to serve course of study to open reached a few consensus with respect to Chinese finance, cause the close attention of the market.

What is foreign investment firm? Current, chinese government invests a company to the foreign trader and do not have a definition, but have a definition however to foreign investment company. Classics the State Council was approved on April 7, 1987, the Bank of China was announced on April 24, 1987 " the Bank of China invests business loan way to the foreign trader " . Its say the 3rd times: “ foreign trader invests an enterprise, namely management enterprise of enterprise of joint venture of China and foreign countries, collaboration of China and foreign countries and ” of foreign capital enterprise. Later, we had " law of enterprises of joint venture of China and foreign countries " , " collaboration of China and foreign countries manages law of enterprises " , " foreign capital law of enterprises " . At that time, our country " company method " have not promulgate, consequently also hard the foreign trader invests the concept of the company. Except " law of enterprises of joint venture of China and foreign countries " the 4th form that sets company of “ jointly owned is ” of finite liability company outside, law manages the form of enterprise and foreign capital enterprise not to have specific provision to collaboration of China and foreign countries. Such, collaboration of China and foreign countries manages enterprise and foreign capital enterprise to be able to take finite liability company or Inc. form. " company method " after applying, finite liability company or Inc. become the main form of our country enterprise. According to afore-mentioned regulations, the author's understanding is, the foreign trader invests a company to should include: Enterprise of joint venture of China and foreign countries namely China and foreign countries is joint-stock and finite liability company; Collaboration of China and foreign countries manages the finite liability company in enterprise and foreign capital enterprise or Inc. . Press " company method " company of foreign country of the 192nd “ is the company that creates outside the territory in showing law of according to foreign country is in the definition of ” , china is mobile (0941.HK) , Chinese marine oil (0883.HK) , in silver-colored Hong Kong (2388.HK) etc red prepare a company to belong to foreign company. And foreign investment firm belongs to Chinese company, the legal position with foreign company is disparate. This also is meant, the 3rd times dialog of Sino-US strategy economy did not involve foreign company to issue A problem.

The foreign investment firm that just will allow to accord with a condition in issues A. Be in our country, the main body that issues a share must be Inc. . Former outside signed on January 10, 1995 via trade department " invest Inc. about establishing a foreign trader the provisional regulation of a certain number of problems " , in the first in regulation: The company of “ foreign country, enterprise and other economy organization or individual …… the principle according to equal mutual benefit, inside the territory in can organizing …… to be in with Chinese company, enterprise or other economy, hold a foreign trader to invest Inc. ” jointly. Accordingly, issue A permissibly the foreign trader invests a company, must be foreign investment Inc. . Former outside inspect of card of classics trade department, China can sign on October 8, 2001 " a certain number of opinions that about appearing on the market the company involves a foreign trader to invest concerned issue " , formulary “ appears on the market about foreign investment Inc. issue stock ” requirement, include “ foreign trader to invest Inc. to issue a share in churchyard (A with B) must accord with a foreign trader to invest industrial policy to reach appear on the market the requirement ” that issues a share. This is meant, the foreign investment firm that just allows to accord with a condition in issues A, be not new break, be opposite however of existing policy carry out fulfil. Dong Mu share (600114.SH) , *ST Can female B (200512.SZ) etc is the foreign investment Inc. that has appeared on the market namely. Accordingly, after the 3rd times dialog of Sino-US strategy economy is finished, foreign investment Inc. issues A pace may be accelerated somewhat.
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