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Print articleChina: Transfer of State-owned Property Rights of Enterprises Must be on the Public Market
July, 2007 -
On 31 December 2006, the State Property Management Commission of the State Council and the Ministry of Finance jointly issued the Notice Regarding Relevant Matters in the Assignment of the State-owned Property Rights of Enterprises to further clarify issues arising from the implementation of the Provisional Measures for the Administration of the Assignment of State-owned Property Rights of Enterprises and the Notice on Relevant Issues in the Assignment of State-owned Property Rights of Enterprises.
Effective since 31 December 2006, the Notice clarifies that the transfer of state-owned property rights to an enterprise, economic organisation or person from Hong Kong, Taiwan, Macao or a foreign country (“foreign enterprise”) must be done publicly through a property rights exchange.
Before setting out the necessary conditions for the transfer, the transferor should consult the Catalogue for Guiding Foreign Investment in Industries for guidance in determining the conditions of the transfer. If the assets are in the restricted or prohibited category,the property rights transaction organisation should make a noteof such in the transfer report to be published in economic and financialnewspapers and magazines at and above the provincial level.
When the principle recipient of the property rights transfer is a foreign enterprise, the transferor must report the transfer to related work departments for examination and approval. In the case of transfers by agreement to foreign enterprise, the transaction must occur according to the regulations stipulated in the Provisional Measures for the Administration of the Assignment of State-owned Property Rights of Enterprises.
Effective since 31 December 2006, the Notice clarifies that the transfer of state-owned property rights to an enterprise, economic organisation or person from Hong Kong, Taiwan, Macao or a foreign country (“foreign enterprise”) must be done publicly through a property rights exchange.
Before setting out the necessary conditions for the transfer, the transferor should consult the Catalogue for Guiding Foreign Investment in Industries for guidance in determining the conditions of the transfer. If the assets are in the restricted or prohibited category,the property rights transaction organisation should make a noteof such in the transfer report to be published in economic and financialnewspapers and magazines at and above the provincial level.
When the principle recipient of the property rights transfer is a foreign enterprise, the transferor must report the transfer to related work departments for examination and approval. In the case of transfers by agreement to foreign enterprise, the transaction must occur according to the regulations stipulated in the Provisional Measures for the Administration of the Assignment of State-owned Property Rights of Enterprises.
