ChinaFIG - Repatriation of Fund Raised from an IPO of a Special Purpose Vehicle (SPV) - Article 47, Order #10
ChinaFIG consultants provide guidance to organizations on China Investments and China policies related to Initial Public Offerings (IPOs) in the US and Hong Kong (HKSE).
Repatriation of Fund Raised from an IPO of a Special Purpose Vehicle (SPV) - Article 47, Order #10
Upon the SPV or overseas company completing the listing abroad, the Chinese Company must, within 30 days, submit notification to the Ministry of Commerce (MOFCOM) to inform them of the listing, plans to repatriate the funds and apply for a non-endorsed FIE Authorization Certificate. Additionally, within 30 days from the listing aboard, the Chinese Company must submit notification to the Securities Regulatory Commission under the State Council, along with supportive documents. The Chinese Company must provide the State Administration of Foreign Exchange with its plan to repatriate the funds with their oversight.
Upon receipt of the non-endorsed Certificate of Approval, within thirty days, the Chinese Company must apply to the appropriate officials to responsible for the registration and State Administration of Foreign Exchange, to receive a non-endorsed FIE Business Licence. And a non-endorsed FIE Foreign Exchange Certificate. In the event the Chinese Company does not report to MOFCOM within the time restrictions established above, the endorsed Certificate of Approval will automatically become null and void and the equity structure will revert back to the position prior to the equity transaction. The Chinese Company will then be responsible to process the appropriate registration according to Article 36 above.