The State Council announced that the "Regulations of the State Council on Outbound Investment" were approved at the 83rd executive meeting of the State Council on April 17 and will take effect on July 1.
The regulations state that the state supports investors in conducting outbound investment activities in accordance with market-oriented principles and actively participating in international cooperation and competition. Investors shall enjoy autonomy in outbound investment in accordance with the law, making independent decisions, bearing their own risks and assuming their own profits and losses. Banking financial institutions shall, based on their functional positioning and in line with the principles of marketization, rule of law, commercial sustainability and controllable risks, provide financing and other financial services for investors outbound investments within their business scope. Policy-based insurance institutions are encouraged to provide overseas investment insurance and other services for outbound investment activities.
The state will improve the outbound investment management system, refine regulatory measures, implement whole-process supervision by category and level, strengthen risk prevention and control, enhance the scientific and security standards of outbound investment, and promote a balance between investment facilitation and effective risk prevention.
When conducting outbound investment activities, investors shall not export or use goods, technologies, services or related data prohibited by the state from export, nor export or use restricted goods, technologies, services or related data without authorization. They shall also not transfer goods, technologies, services or related data prohibited from export, or restricted without authorization, to other countries or regions through cross-border dispatch of technical personnel, organizing personnel to work abroad, providing cross-border technical guidance or arranging cross-border training.
Outbound investment involving capital exchange, import and export of goods and technologies, cross-border trade in services, cross-border data flows, entry and exit of personnel, as well as merger control review, export control, cybersecurity supervision, tax collection and administration, and supervision of state-owned assets shall be handled in accordance with relevant laws, administrative regulations and state provisions.
Where investors engage in outbound investment prohibited by the state, the competent investment authority and commerce authority under the State Council shall, according to their respective responsibilities, order cessation of the investment activities, require disposal of shares or assets within a specified time limit, and confiscate any illegal gains. Those who refuse to comply shall be fined between 0.5% and 1% of the investment amount. Directly responsible executives and other directly liable persons shall be fined between RMB50,000 and RMB100,000.
Where investors fail to complete required approval or filing procedures for outbound investment, or obtain approval or filing by submitting false materials or concealing material facts, the relevant authority shall order rectification, confiscate illegal gains and impose a fine of between 0.1% and 0.5% of the investment amount. Those who refuse to rectify shall be ordered to cease the investment activity, dispose of shares or assets within a specified time limit, and be fined between 0.5% and 1% of the investment amount. Directly responsible executives and other directly liable persons shall be fined between RMB20,000 and RMB50,000.
Where approval or filing for outbound investment is obtained through bribery, fraud or other improper means, the relevant authority shall revoke the approval or filing document, confiscate illegal gains and impose a fine of between 0.1% and 0.5% of the investment amount. If the investment has already been made, the investor shall be ordered to cease the activity, dispose of shares or assets within a specified time limit, and be fined between 0.5% and 1% of the investment amount. Directly responsible executives and other directly liable persons shall be fined between RMB20,000 and RMB50,000.
From the effective date of the penalty decision under the preceding provisions, relevant authorities may, within three years, refuse to accept approval or filing applications submitted by the violator, or prohibit the violator from engaging in outbound investment activities for a period of one to three years. (jl/da)
This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.
AASTOCKS Financial News