ChinaFIG - MOFCOM Requirements for a Special Purpose Vehicle (SPV) - Article 42, 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).
MOFCOM Requirements for a Special Purpose Vehicle (SPV) - Article 42, Order #10
In the situation where a Chinese Company establishes a Specialty Purpose Vehicle abroad, it is required to apply to the Ministry of Commerce for review and authorization. During the review process, the Chinese Company should provide to the Ministry of Commerce items required by the Regulations on Review and Authorization of Investment and Operation of Enterprises Abroad and the following items:
1. a valid form of identification for the individual who will control the Specialty Purpose Vehicle;
2. the proposed business plan for the SPV;
3. the report issued by the Acquisition Advisor in relation to the listing price to be sought for the SPV.
Once the Certificate of Approval for the Investment Abroad has been received, the founder or individual controlling the SPV should apply to the local State Administration of Foreign Exchange to register an investment abroad.