The Ministry of Commerce strengthens the audit management of foreign capital venture investment

To reduce the shares of listed companies exceeding 5% of the total share capital, we need to apply to the competent Department for approval certificate Change securities Times reporter Xu Yan the Ministry of Commerce yesterday issued "on the management of foreign investment issues" notice.　　The circular pointed out that strengthening the audit management of foreign investment in the service sector, for venture capital, equity investment and management, and other industries involving large sums of money inflow, the competent business departments to effectively perform their functions, strict examination and approval, and the same level of industry authorities closely cooperate, strengthen communication and timely report to the Ministry of　　For listed companies with foreign investment, the notice stipulates that foreign investors and their shares should be recorded in the approval certificate of the listed foreign investment company, such as foreign investors who have accumulated more than 5% of the total share capital, and need to apply for the approval certificate change to the commercial competent department.　　In addition, the transaction of foreign capital transactions under 300 million U.S. dollars shall be audited by the provincial commercial competent department, but the matters concerning the acquisition of domestic enterprises by foreign investors shall be subject to the approval of the Ministry of Commerce and shall be audited and administered by the Ministry of Commerce. The notice is clear that the foreign-invested partnership, which invests as the main business, is treated as a foreign investor.　　If a foreign investor applies for investment in China from RMB and foreign currency lawfully obtained from cross-border trade settlement, the provincial competent department of Commerce shall first write to the Ministry of Commerce, and after the Ministry of Commerce's reply, it may transact the relevant formalities and make clear the form and amount of capital contribution in the approval. The circular also strengthens the audit management of foreign investment in the service sector, for financial leasing, International express, advertising, auction and value-added telecommunications, such as the specific provisions of the management of industries, microfinance, market research, credit rating, security services and other sensitive industries, as well as venture capital, equity investment and management of large capital inflows of industries,　　The provincial commercial competent departments shall conscientiously perform their functions, strictly examine and approve them, cooperate closely with the competent departments of the same industry, strengthen communication and report to the Ministry of Commerce in time. The notice also pointed out that for the absence of specific requirements of the domestic branch set up and import as a contribution to the list of equipment, the commercial authorities are no longer approved, foreign-funded enterprises can directly to the relevant departments to handle formalities.