On July 30, 2017, the Ministry of Commerce of People’s Republic of China (‘MOFCOM’) issued the Decision on Amendments tothe Interim Administrative Measures for the Record-filingof the Incorporation and Change of Foreign-invested Enterprises(the ‘Decision’) and the Announcement on Relevant Matters concerning the Administration of the Record-filing of the Incorporation and Change of Foreign-invested Enterprises (the ‘Announcement’).

The Decisionand the Announcement further expandthe record-filingscope and narrow the pre-approval scope for foreign investment. 

The major changes could be noticed in the following two aspects:

1. The merger and acquisition of non-foreign-invested companies by foreign investors, if not relevant to special management measures and connected acquisitions, shall apply to record-filing instead of the complex pre-approval procedure.

2. The strategic investment to Chinese listed companies by foreign investors, if not relevant to special management measures and connected acquisitions, shall also apply to record-filing instead of the complex pre-approval procedure.

We understand that the above changes indicate that Chinese governmentis adjusting the market access system from pre-approval to post management. The changes will correspondingly make the foreign investment in Chinese capital market much easier. We believe that with the foreign investment in Chinese capital market, itwill turn to be more dynamic in the future.