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…
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)…
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 …
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,
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…
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…
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…
News started telling that China is tightening its foreign exchange rules to restrict money outflow from the beginning of this year or late last year, and recently, we saw an explosion of internet discourse on this topic. Many panic.
Right, China is worried about its capital outflow which will surely have adverse impact on China’s economy which is struggling…
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…
Understanding China’s foreign exchange rules is never an easy job, esp in an era when China is aggressively reforming its financial systems. A new rule can well be revised in a few months.
On June 9, 2016, China SAFE (State Administration of Foreign Exchange) issued its new Decree No. 16, entitled “关于改革和规范资本项目结汇管理政策的通知…
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 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
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：…
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：…
News on Sohu has it that Shanghai local industry and commerce bureau (the agency in China in charge of company registry) has called a halt to setup of commercial factoring firms, following the suits of Beijing and Shenzhen, the other two major first-tiered cities in China.
Commercial factoring is indeed something newly imported from abroad into China economy.…
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…
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)…
The State Council passed a comprehensive plan to set up a free trade experiment zone in Shanghai on August 26, 2013 [see our analysis of the New Rules for Commercial Factoring in Shanghai Free Trade Zone] . Few months later, how to evaluate the real impact of Shanghai pilot FTZ in China ?
The Shanghai FTZ is made up of three extant bonded areas – Yangshan, Waigaoqiao…
I am referring to foreign exchange accounts not RMB account (foreigners are allowed to open RMB accounts in China just as Chinese citizens).
Currently, there are two options for foreign entities or legal persons (body corporates) when they wish to open a foreign exchange account in China.
1. Offshore Account
Back in 1998, China has started its offshore …
Many of us know that there is underground banking in Chinese grey financial market, allowing money flowing across Chinese border without undergoing the cumbersome and lengthy procedures and formalities laid down by China State Administration of Foreign Exchange.
The case offers a quite clear picture of how one of the these underground banking systems works. …
