China Matters: China Re-opens Door to Invest in Offshore Holding Vehicles
By Maurice Hoo, Neil Torpey and David Wang
On November 1, 2005, Circular No. 75  of the State Administration of Foreign Exchange (SAFE) of the People’s Republic of China (PRC) became effective. Circular No. 75 supersedes Circulars No. 11 and 29, which for the past nine months have made it difficult for a PRC company to restructure its ownership into an offshore holding company (typically in the Cayman Islands or British Virgin Islands) to receive foreign investment.