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New Regulation of Shanghai Pudong New Area on Establishment of Foreign-Invested Equity Investment Management Enterprises
The promulgation of Pilot Measures for Establishment of Foreign-invested Equity Investment Management Enterprises in Pudong New Area of Shanghai ("Pilot Measures") makes the government of Pudong the first local government to legalize foreign private equity and venture capital investment activities in China by permitting the registration of foreign-invested equity investment management enterprises ("FEIMEs"). The Pilot Measures provide guidance on the qualifications and business scope of FEIMEs, the preferential treatments available to these enterprises, and the procedures of examining and approving FEIMEs and the power of relevant authorities during these procedures. However, the Pilot Measures have also left some ambiguities to be clarified by relevant authorities in practice.
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Administrative Rules of Shenzhen for BOT Sewage Treatment Projects: Defining Ownership of BOT Water Projects in China
Build-Own-Transfer ("BOT") has become one of the most popular models of public-private partnership in China. However, the Chinese government has not enacted unified legislation to define the ownership of BOT project companies in the past 10 years. This legislative vacuum has caused controversies over the ownership of BOT projects, especially in the water sector. In July 2008, the Shenzhen Municipal Government promulgated and implemented the Administrative Rules of Shenzhen for BOT Sewage Treatment Projects ("Rules"), which is China's first local BOT regulation. The Rules also provide a new ownership model, under which BOT project companies can effectively reduce the costs of construction and operation of BOT projects.