China Law Bulletin - March 2006.

Mondaq Business BriefingNbr. 2006, January 2006

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Summary


Foreign investment laws

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China Law Bulletin - March 2006.

In this issue:

Feature Articles

Follow up on the Reform on the Segmented Share Structure of the PRC

Employee Share Plans for Listed Companies

New Venture Capital Measures Reflect Policy to Cultivate Onshore Venture Capital Industry

Notarization Law of the People's Republic of China

Other Recent Developments

Electric Power Market

Banking

Taxation

Foreign Exchange

Trade

Environment

Sports

Patents

Media and Advertising

Direct Sales

Feature Articles

Follow up on the Reform on the Segmented Share Structure of the People's Republic of China

In the July 2005 and November 2005 issues of the China Law Bulletin, we reported that the China Securities Regulatory Commission (the "CSRC") had begun reforming the segmented share structure system of PRC listed companies (the "Reform") with the promulgation of the Administrative Measures for the Reform of the Segmented Share Structure of Listed Companies. Other government authorities have issued related regulations facilitating the Reform, including the Ministry of Commerce ("MOFCOM") and the CSRC issuing on October 26, 2005 the Notice on the Administration of Foreign Investment Relevant to Reforms of the Segmented Share Structure of Listed Companies ; the "Notice"). This comment discusses the Notice and recent developments of the Reform.

The Notice addresses issues concerning foreign invested joint stock companies with A shares listed on domestic stock exchanges ("FIJSC") in connection with the Reform. Two points in the Notice are particularly worth noting:

(i) Filing with and obtaining approval from MOFC...

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