In the words of Premier Wen Jiabao, China is entering the “post-WTO transition period”. For 16 years, China has been the world’s largest recipient of foreign direct investment (FDI) but now its outbound investment is starting to catch up. In 2002, total outbound investment from China was just US$2.5 billion. Last year, that figure had reached a staggering US$18.6 billion.
Chinese corporates and investors have been less adversely affected by the credit crisis than counterparts in other jurisdictions. As a result, they are cashed up and looking to acquire cheap foreign assets. But although empowered by the support of the PRC Government, which has strategically lifted many of the procedural and legal restraints that had previously hindered outbound activity, many Chinese businesses lack experience outside China and are unfamiliar with the business environments of other countries.
New for 2009, Legal Media Group’s China Outbound Investment Guide will address these needs. Published in association with China Law & Practice, IFLR and International Tax Review, the inaugural Guide will include in-depth analysis from leading law firms on the major regulatory and legislative issues influencing FDI from China. More than a dozen jurisdictions will be covered in the 2009 China Outbound Investment Guide, including Australia, Brazil, Canada, Germany, Japan, Peru, the UK and the US. China Outbound Investment Guide 2009 will be published in October 2009 and distributed to more than 3,000 senior executives at institutional investors and corporations in China.
Editorial structure
Chapters should be kept business focused and, wherever possible, assess strategic issues to highlight the opportunities and problems facing investors and corporates. Below are the suggested topics.
1) What legislation governs M&A activity in your jurisdiction?
2) How, and to what extent, is foreign involvement in M&A transactions in your jurisdiction regulated or restricted?
3) What restrictions are placed on corporate reorganisation structures, such as statutory mergers, stock swaps, corporate spin-offs, or transfers of the business?
4) What merger methods are available to prospective foreign acquirers of companies in your jurisdiction?
5) What requirements are placed on foreign investors, in terms of principal disclosure, filing reports, prior notification, commitments to the shareholders of the target?
6) To what extent do disclosure requirements achieve market transparency?
7) To what extent has the issue of material adverse change (MAC) clauses become more important in light of the current economic climate?
8) Are there any specific regulations and/or regulatory bodies governing takeovers in your jurisdiction?
9) What are the various methods by which a takeover can be achieved, including any flexibility over deal terms and price, requirement for committed funding and break fees?
10) How differently are hostile and voluntary takeover bids treated?
11) What penalties are imposed for parties who violate takeover regulations?
12) What are the thresholds for a) disclosing stake-building in a target, and b) disclosing bids and offers?
13) Which regulated industries have maximum foreign ownership thresholds?
14) What have been the major recent developments in competition policy and legislation as they relate to M&A in your jurisdiction?
15) How are the competition/ antitrust regulations enforced in your jurisdiction and how do they approach the issue of ‘abuse of dominant position’?
To contribute to the guide, please contact:
Denny Squibb
Australia, Japan, Korea, New Zealand, Latin America & North America
E: denny.squibb@euromoneyasia.com
T: (+852) 2842 6945
Nick Shrimpton
Hong Kong, India, China, Taiwan, Central Asia & Africa
E: nick.shrimpton@euromoneyasia.com
T: (+852) 2842 6927
Stephen Lai
South-East Asia, the Middle East & Europe
E: stephen.lai@euromoneyasia.com
T: (+852) 2842 6966