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.