Resource Page

• EU DIRECTIVES RELATING TO THIRD COUNTRY REGIMES • EVCA – “Third Country Treatment under Alternative Investment Fund Manager (AIFM) Directive” (July 2010) • HKVCA letter to HK Government with respect to Proposed European Directive on Alternative Investment Fund Managers (June 2010)     • Tax administration on foreign companies deriving income through PRC establishments (April 2010) A number of tax circulars have recently been issued by the PRC State Administration of Taxation strengthening tax administration of foreign companies deriving income through local establishments in China.     • SAT makes changes to rules governing recognition and administration of general VAT taxpayers (May 2010) The State Administration of Taxation (SAT) recently issued new Administrative Measures as well as Notice which were issued pursuant to the Provisional Regulations on VAT and their implementation Rules as amended at the end of 2008.     • China continues to encourage foreign investment (May 2010) China’s State Council released a new opinion relating to inbound foreign investment policy amidst concerns from foreign firms that they face an increasingly difficult business environment in China in the wake of the recent Google and Rio Tinto incidents.     • Private Equity faces the future : Candid views from the market (May 2010) This white paper delivers insight into the challenges and opportunities that lie ahead for the private equity asset class. The research focuses on Limited Partners (LPs) and General Partners (GPs) -- how these market participants are engaged with the asset class and how they see both their own programmes and the market changing over the next several years.     • Holding Structure for Outbound Direct Investment from China (May 2010) According to Chinese Ministry of Commerce (MOFCOM) data, in the first 2 months of 2010, Chinese investors set up 693 overseas enterprises in 89 foreign countries and jurisdictions, with MOFCOM approval. The outbound direct investment (ODI) in these enterprises amounts to US$4.66 billion, and demonstrates rapid growth, as it already exceeds the ODI for the first quarter of 2009.     • PRC Non-resident Enterprise Tax : Beneficial Ownership & Indirect Disposals (May 2010) This article discusses the principles that appear to underlie the recently introduced tax circulars of the State Administration of Taxation, and will also address the major issues and potential risks areas for investors, as well as some possible solutions or remedial actions that investors could consider to adopt in order to navigate through this increasingly complex area of China tax law.     • Alternative Fund Update (May 2010) The Monetary Authority of Singapore (MAS) has released its long awaited Consultation Paper on its review of the regulatory regime for funds management firms, including exempt fund managers. The focus of this Update is on the proposals for alternative funds managers who currently operate as exempt fund managers, including hedge fund managers and VC/PE firms.     • Merger & Acquisition Review – First Quarter 2010 Summaries the rankings of the worldwide announced M&A and breakdown into different regions, industry and financial advisors.     • Emerging Markets M&A Review – First Quarter 2010 Reveals the activity of the announced M&A of various emerging markets, such as India, Latin America, Russia, Eastern Europe, China and so on.     • MOFCOM further clarifies merger notification and review process (March 2010) Highlights the major provisions of the on the Notification of Concentrations of Undertakings and Measures on the Review of Concentrations of Undertakings published by the Anti Monopoly Bureau (AMB) of China's Ministry of Commerce (MOFCOM) as well as significant differences from the drafts released in January 2009 for public consultation.     • Recent changes affecting representatives offices in China (March 2010) Outlines the “Notice on Further Strengthening the Administration of Foreign Enterprise Representative Office Registration” issued by the PRC government which came into force with immediate effect. The new rules indicate an intention to tighten the existing regulatory regime, with increased scrutiny on compliance.     • Update on Foreign-Invested Partnerships in China (March 2010) With the official launch of the new structure for foreign investment in China – the foreign-invested partnership (FIP), this article outlined the approval process, the flexibility offered and the establishment of foreign-invested fund of FIP. The article concluded that the FIP Measures and FIP Registrations successfully address many of the regulatory uncertainties that have traditionally served as threshold obstacles for the establishment of onshore investment funds in China.     • Reliefs under Double Tax Agreements (February 2010) This article summarizes recent tax regulations of China concerning the relief under Double Tax Agreements (DTA) and equity transfers in PRC companies. It also suggests that qualified treaty resident enterprise and individuals who wish to take advantage of DTA relief should take immediate action to apply for approval or file for record as the authority may tighten the regulations.     • The Global Venture Capital and Private Equity Country Attractiveness Index 2009-2010 The study provides a ranking of 66 countries, different regions, and a thorough analysis of the countries’ weaknesses and strengths in terms of economic activity, capital markets, taxation, investor protection, entrepreneurial culture and opportunities among other areas of interest to investors.     • Illustrative International Financial Reporting Standard (IFRS) financial statements 2009 for Private Equity Funds This publication provides an illustrative set of financial statements with notes on accounting policies, financial risk management, critical accounting estimates and judgments, interest income and so on, which are prepared in accordance with IFRS.     • An update on interpretation by the Inland Revenue Department on the Locality of Profit of the Hong Kong Profit Tax (January 2010) The report updates on the Inland Revenue Department current practice on assessing source of profits, its interpretations on the judgment/decisions of recent court cases and updates its view on the locality of profits.     • Q3 2009 US Private Equity Performance Index The index indicates US PE performance showed positive return across all investment horizon five years and longer for the period ending 30 Sept, 2009.     • Chinese Regulators Dismantle Major Barrier for Foreign-Sponsored RMB Funds (November 2009) Chinese regulators in the last few days have reached an agreement to permit general partners organized in Shanghai Pudong to convert foreign currency into Chinese currency (“RMB”) for investment in their own RMB-denominated Funds.     • China Update: GAPP Regulations (October 2009) GAPP Issues Notice Further Restricting Foreign Participation in China's Internet Gaming Industry.     • International Private Equity and Venture Capital Valuation Guidelines (September 2009) Endorsed by 37 associations of venture capital and private equity industry around the world, the guidelines represent the current best practices on the valuation of VC/PE investments.     • EU and US regulatory changes from the Asian Perspective (June 2009) An overview of proposed legislations in US and EU and their impact on Asian private equity and hedge funds managers.

The new "Resource Page" on HKVCA's website provides the latest industry updates from various angles covering market trends, legal, accounting, HR…etc. If you or your firm would like to contribute articles or industry/research reports, please email Patricia Chiu at patchiu@hkvca.com.hk.