1. Xinhua, October 19, 2018.
2. A-share refers to mainland China domestic shares, denominated in RMB and traded on the Shanghai and Shenzhen stock exchanges.
3. In China's pilot free trade zones, if the investments fall within the state-specified scope of implementation of special access administrative measures, the Provisions of the Special Access Administrative Measures for Foreign Investment in the Pilot Free Trade Zone (Negative List) (2018 Edition) shall apply.
4. The Strategic Investment Measures Exposure Draft expands the definition of entities of strategic investments from 「foreign legal persons or other organizations」 to 「foreign companies, enterprises and other economic organization or individuals」.
5. The Strategic Investment Measures Exposure Draft amends the current requirement of 「the total amount of its actual overseas assets is not less than USD100 million or the total amount of its managed actual overseas assets is not less than USD500 million」 to 「actual total assets of the foreign investor shall be not less than USD50 million or the actual total assets managed by the foreign investor shall be not less than USD300 million」, and the last three-year sales limitation for foreign investors acquiring shares of A-share listed company through strategic investment is reduced to twelve months.
6. The Decision of the Ministry of Commerce on Revising Certain Regulations and Normative Documents promulgated by MOFCOM on December 28, 2015, deletes the provision that 「after receiving the letter of in-principle approval issued by MOFCOM concerning the Investor's Strategic Investment in the Listed Company, the Listed Company submits, to the CSRC, the application documents for directed issue of new shares, and the CSRC carries out verification and approval on the application pursuant to the law」.
7. According to Article 3 of the Strategic Investment Measures Exposure Draft, strategic investment in areas within the scope of special administrative measures shall be approved and administered by MOFCOM and the commerce authorities of all provinces, autonomous regions, centrally-administered municipalities, municipalities with unilateral planning and the Xinjiang Production and Construction Corps (the "provincial commerce authorities") within their respective area of authority. For strategic investment where the investment amount is below the quota, the provincial commerce authorities are responsible for approval and administration.
8. According to the Strategic Investment Measures Exposure Draft, for strategic investment through negotiated transfer and which is subject to state-specified special administrative measures on industry admittance, the transaction shall comply with the following procedures: (1) internal procedures of the listed company pursuant to applicable laws, regulations and articles of association of the company; (2) a share transfer agreement has been concluded between the transferor and the investor; and (3) the foreign investor shall submit a relevant application to the local commerce authorities of the place of the listed company for the transaction. If there are applicable special provisions, such provisions shall prevail.
9. Defined as a foreign investor since it is a legal entity wholly owned by Taiwan, Hong Kong or Macao investors
10. The Strategic Investment Measures Exposure Draft discontinues the 10% shareholding ratio requirement after initial investment that was included in the current Strategic Investment Measures.