China Matters: The 'Equity Swap' - China's New Landscape for Mergers and Acquisitions and Overseas IPOs
August 15, 2006
& Neil A. Torpey
On August 8, 2006, the Ministry of Commerce (MofCom), together with the State Administration of Foreign Exchange (SAFE), the State Administration for Taxation, the State Administration of Industry & Commerce, the China Securities & Regulatory Commission (CSRC) and the State Owned Assets Supervision and Administration Commission (SASAC), promulgated the much awaited Measures on Acquisitions of Domestic Enterprises by Foreign Investors (New Rules), to replace the Provisional Measures on Acquisitions of Domestic Enterprises by Foreign Investors (Old Rules) that have been in effect since April 2003. The New Rules will become effective on September 8, 2006.