China Foreign Investment Law and Cross-Border Estate Planning

China has enacted its long-awaited Foreign Investment Law this March but will only come into effect as of January 1, 2020. So far this law is warmly welcomed and hailed at large by the international communities.


Well, there are a lot of comments on the Law and its impact and implications on existing and future foreign investment in China. But hardly is there any…

Overview of Inheritance and Estate Planning under Chinese Laws

Over the last 10 years, I and my team have been offering legal services related to inheritance and estate planning for clients from many other countries outside of China. We have written a number of posts on this blog in that regard.

As per request from an American lawyer, Ms. Jiah Kim, who specializes in cross-border estate planning catering to her American clients,…

The Ways of Moving Money Out of China by Individuals

Image result for USD 50,000 per year China
USD 50,000 per year?

This is a hot topic in today’s China: how to move money in China to a foreign country. With the backdrop of the trade-war and tech-war between China and USA simmering with no assuring sign of cooling down, China economy has been hurt somehow, and 2019 is a tough year for China and in the meantime, United States is still looking buoyant, …

Chose in possession and Chose in Action under Common Laws

This post is rather an effort of myself in learning property laws in common law countries.

As a lawyer, one of my main law practices is to help China’s high net worth individuals to work out their estate plan under which very often clients wishes to allocate their assets or properties in both China and offshore countries. It is critical for me to understand…

Legal Implications on the choice of trustees for properties in China

It is no longer anything fresh for a foreigner to have assets or properties in China. The foreigner can  be either real foreign individual without China root or overseas Chinese or naturalized Chinese. So when those people set up trusts in their residing countries (outside of China) and wish to place their China properties (either real properties or shares)…

Nominee Shareholder Agreement under Current Chinese Laws

 

A nominee shareholder agreement (the “Agreement“) used herein refers to the agreement or contract concluded between two persons (individual or body corporate) whereby A wants to invest in a certain company but for various reason he is hidden from public disclosure and instead, his investment is made and registered in the name of B who …

Overview of China Trust Law

Does China has its own version of trust law?  Many may not have a ready answer.

Yes, China does have its own Trust Law enacted back in 2001. This post will summarize the main provisions and talk about the main issues.

1.   Definition of Trust

Article 2 of the Law provides for the definition of trust:

“For purposes of this Law, trust refers to that the settlor,

Loans made between enterprises in China still invalid?

For many years, loaning activities were tightly controlled and regulated, only duly licensed banks are allowed to lend money to the public, and loans made between domestic enterprises are often held as invalid, and consequently, the borrowed shall return the loan principal to the lender and interests are seized by the state. With this rule in place, borrowings…

Security provided to foreign creditors by Chinese citizens

Here is the situation presented before me: a Chinese citizen who does business in Singapore (or USA) wishes to borrow money in USD from an American citizen, and the American lender requires security or collateral to guarantee that the borrower will be able to pay off the debts (principal and interest). Fortunately, the Chinese debtor has an apartment in Shanghai…

Foreign corporate owners of China properties: how to sell property and take money out of China

Image result for corporate property owner in china

There has been quite a few inquiries in the past from foreign companies that own properties in China (either residential or commercial) on how they can sell their China properties and then convert the sale proceeds into foreign hard currencies such as USD or Euros and take the same out of China.

I wrote a post regarding foreign corporate owners intending to sell…

Cross-border Financing: offshore loan against onshore security

With more and more Chinese companies going overseas for acquisition of foreign assets or equities, China State Foreign Exchange Administration (the “SAFE“) has gone in line with the tide by facilitating cross-border financing whereby it has reorganized its rules on cross-border security or guarantee. In May, 2014, SAFE issued its restated…

The Skeleton Regime of China Administration of Foreign Debts

China is still on the way to open up its capital account in terms of cross-border capital flow, in a well-calculated manner.

When looking at China’s management of its foreign debts, one can easily get dizzy while navigating through tons of rules that have been issued, revised and replaced frequently over time.

This post only attempts to give you a basic…

China tightened control over money outflow via personal bank accounts

China has witnessed its foreign exchange reserve dwindling over the last couple of years on the backdrop of its economy slowing down and its attempt to maintain its currency value.

With that concern, China is trying to manage, if not stop, the holes from which its money is flowing out to overseas. Many foreigners have already felt the pinch and I did get a couple…

天津市高级人民法院关于审理保理合同纠纷案件若干问题的审判委员会纪要(二)及律师解读

天津市高级人民法院关于审理保理合同纠纷案件若干问题的审判委员会纪要(二)及律师解读

 

为了妥善审理保理合同纠纷案件,进一步解决保理合同纠纷审判实践中遇到的疑难问题,依法保护当事人合法权益,规范保理经营行为,促进保理业健康发展,为天津市金融创新提供司法保障和支持,2015年7月27日我院召开2015年第22次审判委员会会议,专题研究了保理合同纠纷案件审理中的若干问题。经过认真讨论,与会委员对于依法解决审判实践中的疑难问题达成一致意见。现纪要如下:

一、会议纪要的形成背景

2014年10月27日,我院2014年第27次审判委员会专题研究了保理合同纠纷案件审理中的问题,形成了《天津市高级人民法院关于审理保理合同纠纷案件若干问题的审判委员会纪要(一)》,较好地解决了保理法律关系的认定、保理合同的效…

天津市高级人民法院关于审理保理合同纠纷案件若干问题的审判委员会纪要(一)

天津市高级人民法院关于审理保理合同纠纷案件若干问题的审判委员会纪要(一)

津高法〔2014〕251号

 

为正确审理保理合同纠纷案件,依法保护当事人合法权益,规范保理业务经营行为,促进保理业健康发展,服务和保障金融改革创新,防范应收账款融资风险,2014年10月27日高院召开2014年第27次审判委员会会议,专题研究关于保理合同纠纷案件审理中的若干问题。经过认真讨论,与会委员对目前审理保理合同纠纷案件的一些问题达成一致意见。现纪要如下:

一、会议纪要的形成背景

保理是以应收账款转让为前提的综合性金融服务。近年来,随着购货商赊销付款逐渐成为主要结算方式,供货商对应收账款的管理和融资需求推动了国内贸易中保理业务的产生和发展。2006年5月,国务院发布《关于推进天津滨海新区开发开放有关问题的意见》(国发〔2006〕20号),鼓励天津滨海新区在金融企业、金融业务、金融市场和金融开放等方面先行先试。2009年10月,经国务院同意,国家发改委批复原则上同意商业保理企业在天津注册。2012年6…

China to allow its citizens to purchase overseas properties 中国政府即将放开公民个人境外购房的限制

As a part of the China’s planned financial reforms on the so called capital account, China has not expressly allowed its citizens to purchase overseas properties, despite some attempts in the past by some local government, which were called off by the central government.

October 30, China Central Bank together with some other central ministries issued…

Chinese FDI in Africa

Overview of overseas business of Chinese companies

China’s role in the global economy has rapidly changed. As Chinese FDI outflows are rapidly closing the gap with inflows, the country is expected to be the most important net investor in the world in the coming two years (Unctad, 2014).

The increasing importance of state-owned enterprises (国有企业,国营企业) in …