Foreigners Eligible to Invest in Futures Companies

Foreigners are eligible to invest in futures companies, but the Chinese partner must be the holding party. The change took effect on November 1, 2007. Also, the real estate industry has been included in the catalogue of restricted industries for foreign investments.

The rules are outlined in the Foreign Investment Industrial Guidance Catalog (2007 Revision) (Catalog), jointly issued by China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM). The Catalog also outlined, in a life insurance company, that foreign investments must not exceed 50%. For a securities company (limited to those engaged in A-share distribution and B-and H-share and government and corporate bond distribution and transactions), foreign investments must be no more than one-third, and no more than 49%for a fund-management company.

The Catalog also included restrictions on foreign investments in the development of land in large areas and the construction and management of top-grade hotels, villas, office buildings and international exhibition centers. Foreigners are also restricted from investing in the secondary real estate markets and in real estate agencies and/or brokerages.

 Source: National Development and Reform Commission

[HuaLun] No.071202