FAQs

1. Can foreign companies invest in unlisted companies?
Reply:

Foreign investors, including institutions, individuals or investment funds can invest in unlisted companies in the form of bonds, stocks or M&A. Please contact our IB Division for specific advice.

2. How can owners of private or limited companies divest?
Reply:
Owners of private or limited companies may divest their capitals by offering private equity to financial investors or to other enterprises in the form of M&A. Please contact our IB Division for specific advice.
3. Can joint-venture companies and foreign-invested companies issue bonds?
Reply:

Joint-venture companies and foreign-invested companies may issue convertible bonds when the conditions are met. Please contact our IB Division for specific advice.

4. Can private companies be equitized and listed?
Reply:

Private or limited companies can also be equitized and listed if they meet the conditions and comply with the law. Please contact our IB Division for specific advice.

5. Is it neccessary for SOEs to have an advisory unit during their equitization?
Reply:

State-owned enterprises are not required to have equitization advisory firms in accordance with the law. In practice, during the early stages (prior to 2000) some SOEs equitized without the help of any consultant. However, over the past 10 years, almost all SOEs have their professional advisor for the equitization to improve the effectiveness, success ratio. A professional financial advisory firm can accelerate such processand accompany the SOEs till the divestment and listing. Please contact our IB Division for specific advice.