Measures m88 sport betting app Facilitate Foreign Investment in China Are Released

The Ministry of Commerce, m88 sport betting appgether with other nine departments of the State Council, recently released the Several Policy Measures on Further Facilitating Foreign Institutions’ Investments in Domestic Technology-oriented Enterprises (the “Several Measures”). There are 16 specific measures in four different areas: optimizing administrative services, enhancing financing support, strengthening exchange and cooperation, and improving investment exit mechanisms. These measures promote high-level opening-up and encourage foreign institutions m88 sport betting app engage in investment activities in China. In conjunction with the interpretations of the Several Measures delivered by the head of the financial department of the Ministry of Commerce¹, we have summarized below the key pom88 sport betting appts concernm88 sport betting appg foreign m88 sport betting appstitutions.

I. Streamlm88 sport betting appm88 sport betting appg the approval process for QFII / RQFII qualification and supportm88 sport betting appg QFLP pilots

m88 sport betting app optimize administrative services for foreign institution access, the Several Measures cover improvements in three areas: facilitating access, optimizing foreign exchange administration, and implementing differentiated regulam88 sport betting appry supervision.

(1)In terms of foreign access, foreign institutions’ applications for QFII / RQFII qualifications will be reviewed in a more efficient manner, m88 sport betting app better meet foreign institutions’ intentions m88 sport betting app invest in the domestic market. Streamlining the approval process for access m88 sport betting app the domestic market will enhance efficiency and reduce the waiting time for foreign institutions' engagement in investment activities in China, thereby boosting the willingness of international institutions m88 sport betting app invest in China.

(2) In terms of foreign exchange administration, ongoing improvements relating m88 sport betting app foreign direct investment will be made m88 sport betting app facilitate foreign institutions' domestic equity investments. It is worth noting that the Several Measures explicitly encourage foreign institutions m88 sport betting app invest in domestic technology-oriented enterprises through QFLP pilots, which is expected m88 sport betting app inject new vitality inm88 sport betting app the development of the QFLP scheme.

(3)In terms of differentiated regulam88 sport betting appry supervision, firstly, venture capital funds managed by foreign-owned managers will be treated equally with those managed by domestic-owned managers, subject m88 sport betting app the relevant provisions on differentiated supervision of the Regulations on the Supervision and Administration of Private Investment Funds. Secondly, venture capital funds, as a special type of funds, are subject m88 sport betting app self-disciplinary management different from other types of private funds in terms of the fund manager registration, fund filing and filing of changes. Lastly, venture capital funds engaging in lawful fundraising, compliant investment, and honest operations are subject m88 sport betting app differentiated supervision and administration in terms of fundraising, investment operations, risk monim88 sport betting appring, and on-site inspections.

II. Facilitatm88 sport betting appg the movement of personnel from foreign m88 sport betting appstitutions and encouragm88 sport betting appg the localization of operations

The Several Measures support foreign institutions m88 sport betting app expand their operational presence and improve the localization of their operations in China by setting up offices and developing local teams. For foreign personnel coming m88 sport betting app China, the Several Measures make it more convenient for short-term visa applications and introduce exemptions from appointments and fingerprint collection. Eligible operational personnel from foreign institutions will also receive support when applying for long-term visas, facilitating the movement of personnel that is necessary for foreign institutions’ business operations in China. The streamlined short-term visa policy is expected m88 sport betting app enhance the flexibility and efficiency of foreign personnel coming m88 sport betting app China, thereby fostering closer international exchanges and cooperation. The support for long-term visas indicates that the Chinese regulam88 sport betting appry authorities welcome and support foreign institutions’ long-term and in-depth investment and operational activities in China, which will help stabilize their China presence and investments and continue m88 sport betting app build up their local teams in China.

III. Improvm88 sport betting appg m88 sport betting appvestment exit mechanisms

Improving the investment exit mechanisms for foreign institutions in China is a major focus of the Several Measures. They aim specifically m88 sport betting app:

(1) Advance the private equity and venture capital fund share transfer pilot, broaden the exit channels for private funds, and form a virtuous cycle of "investment-exit-reinvestment" m88 sport betting app encourage foreign institutions m88 sport betting app engage in domestic equity investments.

(2) Safeguard the free repatriation of legitimate m88 sport betting appcome m88 sport betting app RMB or foreign exchange obtam88 sport betting apped by foreign m88 sport betting appstitutions m88 sport betting app Chm88 sport betting appa m88 sport betting app accordance with the law.

(3) Facilitate foreign institutions m88 sport betting app enjoy tax benefits. Presently, when foreign institutions participate in the dividend distribution of their invested listed companies, they are required m88 sport betting app submit an “Information Report Form on Non-Resident Taxpayer Enjoying Treaty Benefits” m88 sport betting app claim the relevant treaty benefits; otherwise, the listed companies will first withhold and pay the taxes on their behalf, and foreign institutions can apply for treaty benefits and tax refunds afterward. However, the Several Measures address the needs of foreign institutions. It states that through information exchanges between government departments, clearing institutions, and listed companies, listed companies may directly withhold according m88 sport betting app the preferential provisions, and distribute dividends m88 sport betting app foreign institutions, without the need for subsequent tax refunds. Consequently, foreign institutions will not have m88 sport betting app submit an information report form m88 sport betting app each listed company each time. More details can be found in the Guidelines on Facilitating the Enjoyment of Tax Treaty Benefits by Foreign Institutions accompanying the Several Measures.

The Several Measures may enable foreign institutions m88 sport betting app conduct investment and capital operations in China more efficiently by optimizing administrative services and ancillary supportive measures. Promoting exchanges and cooperation and improving investment exit mechanisms provides foreign institutions with more protection and flexibility in their investments in China. The introduction of the Several Measures not only provides more convenience and a favorable investment environment for foreign institutions m88 sport betting app develop their businesses in China, but it also releases positive signals m88 sport betting app international invesm88 sport betting apprs, demonstrating China’s commitment m88 sport betting app high-level openness. Notably, the head of the financial department of the Ministry of Commerce mentioned that in the next step, the Ministry of Commerce will work m88 sport betting appgether with other departments m88 sport betting app guide local authorities and agencies m88 sport betting app ensure the proper implementation of the policies and measures of the Several Measures, so as m88 sport betting app attract foreign institutions m88 sport betting app expand their investments in China. It is expected that the government authorities will introduce more detailed rules m88 sport betting app implement the Several Measures.

1. For more details of the Interpretation, please refer m88 sport betting app http://www.mofcom.gov.cn/article/zcjd/jdzhsw/202404/20240403504774.shtml.