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China Insight - Corporate

Shanghai paves the way for Chinese Individuals to become Shareholders in Sino-Foreign Joint Ventures

01/06/2010

Joint Ventures are still a popular investment vehicle for many foreign investors who do business in China. Sino-foreign joint ventures can take the form of equity joint ventures or cooperative joint ventures. As to the qualification requirements for Chinese joint venture partners, the current Chinese laws on national level provide that only Chinese companies or other economic organisations can become shareholders of joint ventures. This means that so far Chinese individuals could not become shareholders of newly established joint ventures, but were forced to first set up a company as investment vehicle.

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Source
China Insight - Corporate
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Authors

Picture of Ulrike Glueck
Dr. Ulrike Glueck
Managing Partner
Shanghai