China Fortune
 Investment Group Ltd

Bridging the gap between China … and the World

中文版
FAQ
Foreign Direct Investment

General China Glossary of Terms-Terms that Investors Must Understand Beore Invest in China.

ChinaFig can answer your questions on FDI investment, along with China business, China incorporations, China investment, China merger acquisition service along with advice from in-house China accountants.


General China Glossary of Terms

When foreign investors first came to China, they have a hard time understand Chinese investment policies and the system of authorities in charge of business and commercial activities. Thus, ChinaFIG consultants made this list to provide basic information for new comers.

• A Shares – domestically traded shares of public Chinese companies.

• AOA – Articles of Association

• B Shares – Chinese companies which are listed overseas, but traded domestically as well.

• Chop – a stamp which holds certain legal authority such as the right to enter into contracts or approve checks.

• CJV - Cooperative Joint Venture 

• EJV - Equity Joint Venture

• FIE –Foreign Invested Enterprise

• H-Shares - Shares of Chinese companies having public offerings overseas and listings on the Hong Kong securities exchange.

• People’s High Court – The Provincial level Court directly below the People’s Supreme Court.

• JV - Joint Venture

• MOFCOM - Ministry of Commerce

• PRD - Pearl River Delta is the region just north of Hong Kong, in Guangdong Province.

• PRC – Peoples Republic of China

• Red Chip – a Hong Kong listed company with significant interest in China

• RO – Representative Office

• SAIC – State Administration of Industry and Commerce

• SAT – State Administration of Taxation oversees both personal and corporate taxation.

• People’s Supreme Court – The highest level Court in China.

• WOFE – Wholly Foreign Owned Enterprise

• YRD - Yangtze River Delta is Shanghai and the surrounding region including southern Jiangsu province and northern Zhejiang province.