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Company Formation China



Relaxed Policies for Small Companies in China

Written by: Editor

Shortening the procedures for buybacks and allowing companies to buy back shares are about to be sustained by a set of regulations created by the China Securities Regulatory Commission. If at the moment we are talking about a draft, the authorities consider it is time to simplify the rules for buybacks with the help of a few new rules. Foreign investors looking to thrive in China’s main industries are invited to talk to our team of company formation agents in China and find out information about how they can open a WFOE in China, a preferred business structure directed to entrepreneurs from abroad.

Encouraging companies in China to assume buybacks

Among the setups for buybacks and companies in China, the authorities are looking to change the policies for companies’ issuance of exchangeable warrants and bonds, plus employee stock ownership strategies. The authorities are also planning to revise the policies for the treasury stock system in China. Alleviating the market can be made with the help of companies that need to be encouraged to buy back their stocks. A-share which are multi-class mutual funds may represent the solution in this case.

A need for relaxed policies

At the moment, foreign investors in China are owning approximately 7% of the A-shares found on the market. Fortifying the control in a company by investors who hold A-shares can be made with the support of the relaxed policies observing the buybacks. Stock options and equities can be adjusted in a company if the buyback system will be adopted and correctly implemented. China needs to implement such policies in order to strengthen the business climate and to attract even more foreign owners with stability and lots of encouragements.
If you are an entrepreneur from abroad who is interested in opening a company in China, we invite you to contact our team of specialists in company formation in China and ask for complete support in matters of documents and registration with the local authorities.