1) SAFE Circular 75—SAFE
Circular 75 was released on November 1, 2005,
replacing earlier Circular 11 (Jan. 24, 2005) and
Circular 29 (April 21, 2005). The earlier Circulars
made it very difficult to implement offshore
structures to attract foreign investors to Chinese
operations. Circular 75 liberalized the rules applying
to these situations, essentially replacing the earlier
restrictive rules with a registration requirement.
2) 2006 M&A Rules—in September 2006, MOFCOM,1
SAFE,2 and four other agencies promulgated a
comprehensive new set of regulations dealing with all
foreign M&A activity, as well as with restructurings
leading to offshore offerings and other international
financings.
3) SAFE Implementation Notice 106—on May 29,
2007, internal SAFE implementation guidelines were
issued, which were later divulged and became publicly
available. Implementing guidelines are common and
often tend to smooth the rough edges of earlier
regulations. In this case, however, the implementing
guidelines appear to severely constrain Chinese-owned
companies from accessing international capital.
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