Online Class Notes (Jesse) [R / W]


“They chase him, but they can’t catch him”

“always escapes”

when – “eehhh”


accompany with sbaccompany sb 

he looks similar with you he looks similar to you

most of time most of the time


you circulate in your friend’s circlesend / post to your friend’s circle

express (v) – expression (n)


style – eye yel
sell – ell

write – eyyeee


Brian has a fast car. He drives his car fast. He never gets a ticket. His car is too fast for the police. They chase him, but they can’t catch him. Brian always escapes from the police. The police want to catch him. But their cars are too slow. Brian’s car is very fast. He likes to drive over 100 mph. When he sees the police, he waves to the police. The police turn on their sirens. They turn on their red lights. They chase after Brian. Brian speeds up. He passes all the other cars on the road. He escapes from the police.



On 25 October 2019, the State Administration of Foreign Exchange (“SAFE”) issued the Circular on Further Promoting the Facilitation of Cross-border Trade and Investment (Hui Fa [2019] No.28) (关于进一步促进跨境贸易投资便利化的通知(汇发[2019]28号), the “New Circular”). According to the New Circular, it is permissible for a non-investment foreign-invested enterprises (“FIE”) to use its capital contribution made by its foreign shareholder to carry out equity investments in the PRC, provided that (i) the FIE shall not engage in the investment area listed in the Special Administrative Measures for Access of Foreign Investment (Negative List) (2019 Edition) (《外商投资准入特别管理措施(负面清单)(2019年版)》) and (ii) the investment project shall be real and in compliance.

Responses of SAFE

Notwithstanding the aforementioned relaxation under the New Circular, how will the New Circular be implemented in practice? Is there any specific requirement for a FIE to make equity investment activities? With respect to such questions, we made inquiries with SAFE and a couple of its branches today and we summarized their responses below.

According to consulting call with SAFE, they told us that:
(1) the New Circular stipulated general principles and rules in respect of domestic equity investment for FIEs to follow; and

(2) they were formulating a nationwide operating guideline for the New Circular (the “Guideline”), and the relevant implement queries would be clarified in the Guideline. As they said, such Guideline would be promulgated soon.

2. Branches of SAFE

We also enquired with Shanghai Branch, Beijing Branch and Shenzhen Branch of SAFE, they replied us that they were waiting for the operating guideline to the New Circular issued by SAFE as well. Since there is no specific guideline for them and handling banks to follow at present, if any FIE intends to conduct equity investment with its capital, the FIE could discuss with the local bank, and the local bank may seek local SAFE’s opinions case by case.

Market Practice

According to a news published by Sina on 15 October 2019, SPD Bank has helped a FIE registered in Shanghai FTZ in using its capital contribution to reinvest in a WOFE in Shanghai FTZ.

Please refer to the following web link for more details.