New SASAC Rules to Enhance Supervision and Protection of State-Owned Assets
China Insight - Corporate
The transfer of so-called State-owned assets already for considerable time has been subject to special procedures. State-owned assets are shares or assets held by State-owned enterprises. According to the Provisional Measures on Administration of Transfer of State-owned Property Rights in Enterprises of 1 February 2004 (“2004 Provisions”), State-owned assets cannot be simply transferred by agreement and registration. Additional approval/recordal formalities with the competent State-owned Assets Supervision and Administration Commission (“SASAC”) are required, the State-owned assets must be evaluated by a specially licensed evaluation firm and the transfer must be handled through the so-called Equity Exchange Center by bidding process.
On 24 June 2016, the SASAC and the PRC Ministry of Finance provided further guidance on these issues by jointly promulgating the Measures on Administration of Transactions of State-owned Assets of Enterprises (“2016 Measures”). The 2016 Measures took effect on 24 June 2016 and confirm that all State-owned asset transactions shall be subject to public bidding.
Please click the Source Link below to read the key content of the 2016 Measures.