Top Stories - Investment

By Yao Lu, Dezan Shira & Associates
20th May 2013 08:49Lanzhou, once known as the “Golden City,” has been an important regional commercial center and transportation hub since as early as the Han Dynasty. The city used to be a major link on the ancient Silk Road and has played a vital role in the cultural and economic exchange between China and countries to its west throughout Central Asia, the Middle East and Europe. Today, Lanzhou ... read more

By Sondre Ulvund Solstad
10th May 2013 09:43Chinese companies increased their investments in Europe by as much as 21 percent in 2012, solidifying its position as the main destination of Chinese Outward Foreign Investment (ODI). In total, Europe was the recipient of US$12.6 billion of Chinese investment last year, which now represents approximately 33 percent of all Chinese ODI.   The rationale for increasi ... read more

By Chris Devonshire-Ellis
9th May 2013 09:11Export manufacturing moves on while sales-driven structures move in   The 2012 drop in foreign direct investment in China is pointing out that manufacturing capacity is being rethought by MNCs considering global trade as a whole. The drop – some 4 percent from FDI figures in 2011 – is down to a number of issues, not least ... read more

By Dezan Shira & Associates
7th May 2013 08:27The reasons for using an intermediary company when investing into China or Asia from say the United States, Europe or Australasia are to take advantage of various tax treaties that exist, to provide minimal corporate income tax exposure with options for future dividends repatriation, and to legally hold more risky investments at arm’s length from the parent company in the event of any ma ... read more

By Dezan Shira & Associates
1st May 2013 09:33The Indian government has clearly indicated that infrastructure development remains the nation’s top priority. Recognizing that a steady supply of power along with efficient transport infrastructure will help revive the Indian economy and boost productivity, the government has set up plans to increase gross capital in infrastructure over the next several years to over U ... read more

Chris Devonshire-Ellis, Dezan Shira & Associates
15th April 2013 08:55I’ve attended two prominent annual U.S.-Asia investment events this past week, namely the Hot Markets Watch in Cincinnati, and the Asia-Pacific Business Outlook in Los Angeles. These events are high level, attracting many American ... read more

By Chris Devonshire-Ellis, Dezan Shira & Associates
3rd April 2013 09:13China is not the only solution for export-driven manufacturing, and Asia’s trade evolution is determining that business models move on for adventures elsewhere.   At the turn of the 21st Century, there were two main schools of commercial thought with regards to China. The most popular was that China represented a massive market to s ... read more

By Dezan Shira & Associates
26th March 2013 09:00By continually issuing favorable policies and incentives aimed at attracting inflows, and deciding to decrease the country’s corporate income tax levels from January 1, 2014, it is clear that Vietnam’s government is intent on taking a proactive approach to foreign direct investment. Enterprises and individuals interested in taking advantage of the country’s friendly i ... read more

By Dezan Shira & Associates
22nd March 2013 09:43As part of China’s efforts to internationalize its currency, China initiated the “RMB Qualified Foreign Institutional Investors Pilot Program (RQFII Pilot Program)” at the end of 2011, which allows qualified foreign institutions to invest offshore RMB back into Mainland China’s capital market.   So far, China’s St ... read more

By Dezan Shira & Associates
19th March 2013 08:56As a financial and services hub, Singapore is the de facto financial capital of the Association of Southeast Asian Nations (ASEAN). For companies interested in doing business with ASEAN, the place to start is Singapore.   Companies in Singapore enjoy a low corporate income tax rate of 17 percent, no tax payable on dividends earned externally from its borders, and ... read more

By Heather Cruz, Mark D. Young, Maureen Donley, Geoff Bauer & Daniel Konar II
14th March 2013 09:39The Dodd-Frank Act greatly increased the reporting requirements applicable to private investment funds and their advisers. In recent months, both the SEC's and CFTC's new reporting forms have become effective.  Now that the initial round of filings is complete for the largest advisers, we expect that their experiences will prove instructive for advisers preparing their fir ... read more

By Pedro Simões Coelho & Pedro Bizarro
4th March 2013 09:59These days, articles about Portugal in the international economic press are often packed with references to austerity measures, economic downturn and the international assistance programme.  The authors of this article agree that any realistic assessment of the Portuguese economy must acknowledge that the decaying economic conditions have taken their toll.  However, they will ado ... read more

By Anouk Agnes
1st March 2013 09:2125 years ago, in March 1988, Luxembourg was the first country to transpose the European UCITS Directive into national law.  Since then, the country has held a leading position in Europe for the domiciliation, the administration and the distribution of cross-border investment funds.  To support this development, ALFI - the Association of the Luxembourg Investment Fund Industry - w ... read more

By Daniel Serventi
27th February 2013 09:06Latin America has continued to see significant PE activity over the last several months, as local and global firms are drawn to the region’s compelling domestic growth story.  This is despite the deceleration of the global macroeconomic environment that has challenged growth over the near-term and led to significant policy interventions designed as countermeasures against econom ... read more

By Chris Devonshire-Ellis, Dezan Shira & Associates
26th February 2013 08:53The massive rise of Chinese middle class wealth brings the “one billion consumers” myth far closer to reality   The issue with any new, emerging market lies within a study of its demographics. In the early 1990s, China had plenty of young, energetic men and women that had just reached the working age, in addition t ... read more

By Floor Veltman, Joris van Horzen & Joost Achterberg
18th February 2013 09:06Background   The events of the financial crisis have demonstrated the impact of alternative investment fund managers (“AIFM(s)”) on the European financial market and the shortfall of adequate regulations.  As a result in 2009 finance ministers from the G20 countries agreed to oversee and regulate hedge fun ... read more

By Laragh Cassar
12th February 2013 09:56Malta has been, for the past number of years, an attractive fund domicile, particularly due to the Professional Investor Fund (PIF) regime, which regulates most forms of collective investment undertakings, including hedge funds and private equity funds.  Indeed, Malta has emerged as a jurisdiction for funds, complementary to traditional European fund domiciles, such as Luxembourg and Irel ... read more

By Dezan Shira & Associates
11th February 2013 10:00The ASEAN–India Free Trade Area (AIFTA) is a free trade area consisting of the 10 member states of the Association of Southeast Asian Nations (ASEAN) and India. The initial framework agreement was signed in Bali, Indonesia, on October 8, 2003, and the final agreement was signed on August 13, 2009. The free trade area came into effect on January 1, 2010.   ... read more

By Gregg S. Buksbaum
7th February 2013 12:46Although not a new phenomenon, in the post-Madoff world there is an increasing desire for institutional investors in hedge funds to seek customised solutions from fund managers in order to gain more transparency, reduce liquidity risk, and influence portfolio construction in ways that cannot necessarily be achieved through a typical co-mingled investment pool.  These solutions primarily t ... read more

By François Petit
5th February 2013 08:38A solid political environment with a strong reputation for pro-business legislation and administration together with a tradition of strong investor protection in Luxembourg have contributed to the creation of a business-friendly environment and the development of a leading international financial centre.  Luxembourg offers companies exceptional opportunities for doing business in Europe a ... read more

By Dezan Shira & Associates
4th February 2013 08:44One of the great enigma’s concerning managers across Asia today is Vietnam’s trade relationship with China, its massive northern neighbor with which it shares an 840-mile border.   This is a timely question to examine, not least because Vietnam is one of Asia’s “Tiger Economies” and, although it has suffered over ... read more

By James Lasry & Anthony Jimenez
1st February 2013 09:04A New Era for European Funds   The global funds industry is currently in a state of transformation; world-wide regulatory and legislative changes are leading the global fund sector into a new era of increased regulation and enhanced investor protection.  Gibraltar has emerged from the reshaped regulatory landscape as a seriou ... read more

By Daniel Haefele
30th January 2013 09:43Distribution to Swiss Investors becomes more difficult and more expensive in the light of the new regulations.  Outsourcing legal representation to a high-quality local service provider and access to an extensive distribution network are key.    Currently Swiss (financial) intermediaries are being affected by a wave of new ... read more

By Osamu Adachi & Takahiko Yamada
29th January 2013 08:50Investment funds established in Japan using an investment trust structure (the "Investment Trusts") or an investment corporation structure (the "Investment Corporations") are subject to the Investment Trust and Investment Corporation Act of Japan (the "ITICA").  The ITICA also governs investment funds established in other countries (su ... read more

By Donnacha O’Connor
23rd January 2013 10:11July 22, 2013, the transposition deadline for the AIFMD, is a very significant date in the regulatory calendar, not only for EU managers of non-UCITS funds, but also for non-EU fund managers who are raising capital in the EU, or have aspirations to do so.   While the AIFMD applies to EU based fund managers and will subject many of them to mandatory registration w ... read more

By Dezan Shira & Associates
22nd January 2013 09:30Foreign-invested commercial enterprises, commonly known as FICE, are fast becoming an ideal way for foreign investors to enter China’s Mainland market. Previously, foreign companies could only form trading companies on their own if they registered in the country’s Free Trade Zones. However, as part of China’s WTO commitment to let foreign-invested enterprises exercise ... read more

By Dezan Shira & Associates
15th January 2013 09:44Recent media commentary has been suggesting that the business environment in China has worsened for foreign investors over the past year. Although China is still evolving as an emerging market, I disagree with the basic premise that it is becoming tougher, and even unwelcoming, to foreign investors.   A sense of foreign investors being singled out for specific ab ... read more

By Dezan Shira & Associates
14th January 2013 09:02Times are changing for the global financial community. China was the largest investor in developing economies in 2010 and 2011, with total outbound foreign direct investment (OFDI) amounting to US$60 billion annually and projected to reach US$150 billion by 2015. Furthermore, Chinese leaders have now officially prioritized Chinese outbound investment over the historical ... read more

By Dezan Shira & Associates
7th January 2013 08:37To support the balanced development of different regions within the country, China’s State Council officially approved the “Planning for a Central Plains Economic Zone (2012-2020) (guohan [2012] No.194, hereinafter referred to as the ‘Planning’)” on November 17, 2012. The proposed economic zone would cover the entirety of Henan Province, as well as ... read more

By Raposo Bernardo’s Energy Department
3rd January 2013 09:54The classical energies continue their normal growth rate, with a lot of regulatory work and some important transactions.  But it was the renewable sector, since about 2005, who gave rise to an irreversible boom in the energy market, leading to energy practice spin off as well as the creation of large specific departments in this area.  The renewable energy experienced a fantastic ... read more

By Maarten Roos, Tony Lu & Robin Tabbers
17th December 2012 09:05Continued uncertainty in Europe and the US is leading more international companies to expand activities in China, both in terms of sourcing, and – increasingly – by selling directly on the Chinese market.    The key question to this new boost of investment is how to optimally structure an investment int ... read more

By Dezan Shira & Associates
10th December 2012 08:50With the view to promote equity contributions made through scientific results and scientific innovations, China’s Securities Regulatory Commission (CSRC) and the Ministry of Science and Technology (MOST) jointly released the “Guiding Opinion regarding Capital Contributions in the Form of Scientific Results and Determination of the Relevant Equity Rights (hereinafter referred to ... read more

4th December 2012 10:07Da Nang Hi-Tech Park is the newest among three high-technology zones in Vietnam, besides Hoa Lac Hi-Tech Park in Hanoi and the Ho Chi Minh City Hi-Tech Park. Da Nang City is calling for foreign investment in its hi-tech park by promising attractive incentives. The Vice Chairman of Da Nang Phung Tan Viet presented in front of the Dutch business representatives in an event ... read more

By Dezan Shira & Associates
3rd December 2012 08:27A report by the United Overseas Bank (UOB) of Singapore has indicated that the global economy will increase by 73 percent over the US$63 trillion seen in 2010 to reach US$109 trillion by 2020, with Asian trade flows one of the key factors contributing to this robust growth. Wit ... read more

By Dezan Shira & Associates
30th November 2012 10:09With the recent issuance of the “Circular on Issues of Facilitating Visas and Residence Permits for Highly-Qualified Foreigners’ Entry into China (MHRSS Circular [2012] No. 57),” more atte ... read more

By Dezan Shira & Associates
26th November 2012 08:52China surpassed the United States to become the world’s largest recipient of foreign investment in the first half of 2012, according to the Global Investment Trends Monitor released by the United Nations Conference on Trade and Development (UNCTAD) on October 23, 2012. For the first six months of 2012, global foreign direct investment (FDI) totaled US$668 billion, down 8 per ... read more

By Philip Forsang Ndikum
23rd November 2012 10:27Cameroon is a member of Communauté Economique et Monétaire de l'Afrique Centrale (CEMAC), a group of six countries with a common central bank, Banque des États de l'Afrique Centrale (BEAC).  The Commission Bancaire de l'Afrique Centrale (COBAC) is the national and supranational watchdog for finance within CEMAC. &nb ... read more

By Brian Kaggwa
22nd November 2012 10:05Given the state of public sector resources around the world, governments seek to enhance resources by attracting private sector participation and Uganda is no exception.  Such participation may be somewhat unstructured but there is a changing trend with the establishment of formal systems.  Presently the Uganda Public Private Partnerships Bill is tabled before parliament awaiting ... read more

By Dezan Shira & Associates
21st November 2012 10:12The Guangzhou People’s Government released the “Circular on Several Policies to Promote the Development of Micro, Small and Medium-sized Enterprises (MSMEs) (shuifu [2012] No.34, hereinafter referred to as ‘Circular’)” on November 1, which clarifies the preferential policies on supporting the development of MSMEs in th ... read more

By Haider Ali
20th November 2012 09:36The Royal Mail have helped add to the minute feeling of glee that the UK’s economy may be picking up after reporting a gargantuan increase in profits after six months.   Significant to this was the growth in the number of parcel deliveries being made around the country.  However the bread and butter of the company has not bucked the trend and continued to decli ... read more

By Haider Ali
16th November 2012 10:22The reliance on oil for small businesses to function and help facilitate growth in economically advanced countries like the United States and the United Kingdom cannot be underestimated in today’s turbulent climate.  What nobody wants right now is a hike in prices, which is sure to be the case should the oil taps of Iran turn off as a response to attacks on their nuclear install ... read more

By Dezan Shira & Associates
14th November 2012 09:29China is set to commence negotiations to create a 16-nation trade bloc, known as the Regional Comprehensive Economic Partnership (RCEP), with its launch expected to be formally announced at the ASEAN summit in Phnom Penh later this month. The RCEP will include the 10 members of the Association of Southeast Asian Nations (ASEAN) plus China, India, Japan, South Korea, Australia and ... read more

By Dezan Shira & Associates
13th November 2012 09:11Foreigners who work in residential housing and utilities, retail trade, and services will be required to pass a basic Russian-language test under a bill that the State Duma approved on October 23rd in a key second reading. The head of the Federal Migration Service, Konstantin Romodanovsky, called the measure practical and rejected the idea that it was discriminatory. ... read more

By Graham Sheward
7th November 2012 09:02What factors are attracting companies and wealthy individuals to the Mauritius?    Mauritius is internationally recognised for its continuity of government and rule of law.  The island has enjoyed enduring political stability ever since gaining independence in 1968 with a democratically-elected government every five ... read more

By Tanuj Sud
2nd November 2012 09:56Introduction – Macro Economic Considerations/Initiatives for Project Finance:   With a Gross Domestic Product (GDP) averaging around 6-8% in the recent past, and growth prospects enhanced by progressive liberalisation and a relatively stable political and financial system, capital inflow and mobilisation in India continues t ... read more

By Dezan Shira & Associates
31st October 2012 10:00Decree No. 73/2012/ND-CP regarding education management for foreign cooperation and investment was promulgated in September. Accordingly, the forms of foreign investment allowed in education include 100 percent foreign-capitalized educational institutions and associated educational institutions between domestic investors and foreign investors.   Foreign investors ... read more

By Dezan Shira & Associates
29th October 2012 08:47Hainan Island, China’s smallest and southernmost province has lagged far behind others in the region in terms of economic development. In 2011, the region’s GDP reached RMB252.26 billion, making it the fourth smallest economy in the entire country. However, the province boasts enormous economic potential.   Labeled as the “Oriental H ... read more

By Hugh Naylor
26th October 2012 11:54As Europe suffers stagnant growth and the weak recovery in the US appears to be grinding to a halt investors and corporations continue to focus on the high growth opportunities presented by emerging markets.  Amongst these Africa is increasingly becoming a favourite.  Consistent growth over the last decade, albeit from a low base, combined with greater economic and political stab ... read more

By Emine Basci Devres & Simge Akyüz
25th October 2012 10:08Due to their structures, mergers and acquisitions, de-mergers and form conversion transactions of corporations within the Turkish law system concern and comprise more than one field of law.   Within this broad legal spectrum, the concerned transactions have their reflections and consequences most common among others in law of obligations, commercial law, capital markets law and c ... read more

By Dezan Shira & Associates
24th October 2012 10:50Foreign investment into India can come in a variety of different legal entities. Your choice of entity depends on the kind of work you plan to do during your time in the country. Below we discuss the functions and establishment requirements of each of the five entities that can be established as a business enters India. Specifically, the five entities are as follows: ... read more

By Hon. Nimrod E. Mkono M.P. & Ofotsu A. Tetteh-Kujorjie
19th October 2012 09:51The United Republic of Tanzania, made up of Mainland Tanzania and Zanzibar, is endowed with substantial mineral wealth and has a population of close to 43 million people.  It is one of the most promising emerging markets in the region, offering a unique combination of developed economic infrastructure, a vibrant emerging market economy and a clear policy of openness to foreign investment. ... read more

By Dezan Shira & Associates
17th October 2012 08:49The Government of India on October 4, 2012 approved moving the FDI cap in insurance to 49 percent while also approving the introduction of certain official amendments to the Pension Fund Regulatory and Development Authority Bill (2011). The decision has been taken by the Cabinet headed by the Prime Minister of India. Now, with the Cabinet approving the scheme, the Insura ... read more

By Haider Ali
5th October 2012 08:36Drilling beyond the frozen shores of the Arctic was unfathomable for a variety of reasons from yesteryear. Logistical problems compounded with a lack of infrastructure all made the dream of searching for riches in this region very unfeasible. Throw into the mix the torrid winters, entrepreneurs would feel that investing there would not garner the returns shareholders and speculators would want.< ... read more

By Dezan Shira & Associates
27th September 2012 09:41The Indian government has allowed 51 percent foreign direct investment (FDI) in multi-brand retail, a major reform awaited by many multinational retail chains. The move permits global firms such as Walmart, Metro, and Carrefour to establish shop with a local partner and sell directly to consumers for the first time, which could transform India’s US$450 billion retail market and drop infl ... read more

18th September 2012 09:24 The United Kingdom’s economy has received a much needed shot in the arm with the news that Japanese car giant Honda has decided to make a whopping investment of £267m. The investment programme at its UK car plant in Swindon will help create many more jobs in order to boost their production needs.   Upon the good news Honda said in a ... read more

By Christine Beernaerts
12th September 2012 09:41 I. Introduction   Luxembourg’s geographical size belies its long-standing tradition as an international hub for business.  By the end of 2010, Luxembourg had over EUR 2,199 trillion in net assets under management placing the country as the second largest fund centre in the world.  It is also f ... read more

By Daniel Häfele
10th September 2012 10:05 Possibly it is the much-lauded political stability, or maybe it’s the fine view over Lake Zurich or the excellent chocolate that attract investors in droves to Switzerland.  In any case, the Swiss financial centre is attractive to both international and domestic investors alike.  At year-end 2010 assets under management in Switzerland totaled around Sfr 5,50 ... read more

By Chris Devonshire-Ellis
21st August 2012 08:55 As Emerging Asia releases its Q1 figures, there are a whole bunch of stats that spring out, not least the continuing GDP growth throughout the region. However, digging deeper, some surprising trends seem to e developing concerning China and the neighboring countries that are increasingly competing with it. I’m the first to admit I’m not an economist, so readers may ... read more

By Haider Ali
15th August 2012 09:00 With the property bubble coming to an abrupt halt, turning to emerging technologies may be worth the ticket to long term financial gain.    With Apple having a chokehold on the technology market - having developed their existing products like the iPhone and the iPad into a successful series selling tens of millions of units worldwide - we h ... read more

By Haider Ali
8th August 2012 08:27 Tracing assets within corporate funds can quite rightly ruffle feathers.  Often bereft of sentiment, corporate guys with corporate funds interspersed with friends in high places can make it quite thorny for assets within corporate funds to be traced at all.  A lot is dependent on corporations and how they set up funds and for what purpose.   ... read more

Q&A with Mona Pearl
1st August 2012 09:32 1. What Are 3 Top Reasons Middle Market Companies Positioned For Growth In Global Markets?   Middle market companies are more flexible, innovative and able to change and adapt much faster than the large multinationals.  That is a combination of size, layers of management as ... read more

By Rosario Di Maggio
27th July 2012 10:04 Although it is still too early to tell, many observers agree that the worst of Vietnam’s economic dip is over, its economy will bounce back in the coming years, and a new wave of foreign direct investment is likely to flow into the country. We can definitely confirm a strong interest among foreign investors with regards to investment into Vietnam ... read more

By Dezan Shira & Associates
16th July 2012 08:42The paramount indicator of a country’s economic status is measured by its GDP. India, the second-most populated country in the world with more than 1.1 billion people, has emerged as one of the fastest growing economies in recent years. It is a republic with a federal structure and well-developed self-governing judiciary with political consensus in reforms and stable democratic environme ... read more

By Haider Ali
13th July 2012 10:14 For decades on end North Dakota sat on the periphery as one of America’s states that was regarded as a sleeping giant.  Primarily it’s vast array of land made North Dakota a great opportunity for farmers to exploit its land for agricultural purposes.  But for the last ten years they have managed to have low employment rates and a booming housing ec ... read more

By Chet Scheltema & Frank Yang
10th July 2012 09:44 Foreign investors and domestic Chinese investors have traditionally been unable to co-invest in mainland business ventures, except by means of the joint venture or unofficially sanctioned structures. With the introduction of several new legal entities, this restriction has been lifted and foreign and domestic investors may now freely co-mingle their resources in one enterprise. These s ... read more

By Haider Ali
6th July 2012 09:10 European financial markets seem to be in a state of flux due to a variety of ingredients that have managed to combine to create a disastrous recipe of epic proportions.  Much of the economic policies coming out Germany have led to the likes of Spain and Italy, both economic powerhouses in their own right, head towards the path of bailout monies from the European Central Bank.& ... read more

By Haider Ali
29th June 2012 09:30 In the midst of economic tumult, the Bank of England is suggesting more “Quantitative Easing” to help alleviate a contracting economy.  Interspersed with low interest rates, which are only benefitting bankers who are lending to each other and not to small businesses; this is the recipe for an inflationary disaster.  Adding to the myriad of confusio ... read more

By Haider Ali
27th June 2012 09:51 The Chief Executive was supposed to face an interrogation of sorts from senators comprised of both sides of the political spectrum looking for an explanation behind the two billion dollar trading loss by JP Morgan.  Instead we were left with a man at the peak of his powers in the financial world walking away with his reputation unblemished and feckless politicians illustrating ... read more

By Tran Que Chi
18th June 2012 09:30 Under a classification scheme conducted by Vietnam’s Ministry of Planning and Investment (MPI) in order to prioritize investment, Chu Lai in Quang Nam and Dung Quat in Quang Ngai have been listed as the country’s first-rate coastal economic zones. Mr. Vu Dai Thang, head of the Economic and Industrial Zones Management Department under the ... read more

By Dezan Shira & Associates
13th June 2012 09:27 The current economic trends affecting the global market have not been overly positive recently, even in countries such as China and India. For the latter, GDP growth for of 5.3 percent for the January to March 2011-2012 period was the lowest in nine years. This was a bit of a surprise considering forecasts estimated a level closer to 6 percent. Although thi ... read more

By Sofia Liska
7th June 2012 09:58 The fund industry in India will soon enter the next phase of its evolution now that the Securities and Exchange Board of India (SEBI) has released the 2012 alternative investment fund (AIF) regulations, which they aligned to work with both international developments and the Indian economy. Little will change for funds currently governed by the venture capit ... read more

By Martin Fowler
6th June 2012 09:13 With the Australian share market oscillating in a trading range of around 4,000 to 4,400 points for several years now, it is little wonder that investors are beginning to doubt old rules of thumb in favour of the concept of the "new normal".  One increasingly common example is the multiple of earnings or price to earnings ratio (PE).  The price to ea ... read more

By Clive Cachia
25th May 2012 10:23 The Australian Securities Exchange (ASX) is continuing to promote itself as a hub for global resource investment.  It is proposing several reforms to address the capital-intensive needs of small to mid cap energy and resources companies.  These include changes to the current capital raising and admission requirements.  The ASX has also provided useful advance ... read more

By Al Cooper
21st May 2012 08:50 There's a lot of money to be made in real estate, and since most don't like to see one percent returns on their bank CDs, many are starting to jump into the real estate investing game because of the nice returns. The problem with real estate investing is that if you make one wrong move, you could quickly be thousands of dollars in the hole. Like any industry, there are ... read more

By Dezan Shira & Associates
14th May 2012 09:25Recent changes to China’s tax treatment of representative offices (ROs) have started to infringe on the viability of using an RO as a vehicle for “investment” into China in terms of increasing financial pressure. While often stated as being an “investment” vehicle, alongside wholly foreign-owned enterprises (WFOEs) and foreign-invested commercial e ... read more

By Xiaolei Gu
8th May 2012 09:07 China’s Ministry of Commerce released the 12th Five-Year Plan (FYP) for Foreign Trade Development last week, which aims at an annual growth of 10 percent during 2011-2015 and a total of US$4.8 trillion by 2015. The 12th FYP outlines the fruitful achievements made during the 11th FYP, analyzes the new domestic and international environment for foreign trade, and ... read more

By Allen Smith
25th April 2012 09:15 To put it bluntly, who doesn’t want to earn a little extra money, especially, while dealing with an outstanding debt amount? Well, everyone, I guess.  One of these most efficient and reliable vehicle to achieve this goal is building and generating money online to pay off debts and ... read more

By Gerd Foerster
18th April 2012 10:22 Amongst the several advantages of doing businesses in Brazil, the most important are related to the Brazilian territorial size and its population.  Possessing an almost continental extension, being the fifth largest country of the world in area and with a population of approximately 200 million inhabitants, Brazil has a consuming market of more than 120 million people. ... read more

By Tom Cleveland
16th April 2012 09:51At one time in the not too distant past, international commerce was primarily the private playground of large corporate enterprises.  Transaction sizes were large, supported by expensive “letter-of-credit” processes involving a host of bankers, lawyers, finance professionals, and shipping companies.  In today’s modern era of globalisation, t ... read more

By Pascal Morosini, Global Head of GSF Sales and Relationship Management, Clearstream
10th April 2012 09:47Look after your P&L – receive collateral for your cash and re-use it for additional revenue The introduction of EMIR (and Dodd Frank), Solvency II, CRD IV, MiFID/MiFIR and others will require many systemic changes for all players in the financial market, both financial and non-financial institutions. The shock of the crisis prompte ... read more

By Tony del Amo
29th March 2012 12:37Le Gallais & Luce traces its heritage back to the last years of the 19th century, making it almost certainly the oldest law firm in Jersey.  However, in order to survive, it has always ensured that its staff is on the cutting edge of changes to the law and the legal system. Today, approximately half of its turnover derives from p ... read more

By Dezan Shira & Associates
6th March 2012 09:54 Overseas investors have invested about Rs. 14,000 crore into the Indian equity market so far this month and experts expect this positive trend to continue in the future as well. Since the beginning of 2012, foreign institutional investors (FIIs) have infused a total of Rs. 24, ... read more

By Marc Saluzzi & Susanne Weismüller
5th March 2012 09:57 Since the outset of the financial crisis, the financial services industry has been faced with a host of regulatory initiatives, which it has to analyse, comment on as part of consultation procedures and finally put into practice.  The cumulative impact of various regulatory initiatives on the global investment fund industry is uncertain and should be analysed, in order ... read more

By Steven Daniels & Faiz Ahmad
28th February 2012 10:50 The choice of acquisition vehicle, and more broadly speaking the choice of investment structure, can profoundly impact a fund's experience with an investment in a variety of significant, and often economically relevant, ways.  Historically, most businesses were organized as corporations.  Over time, however, the trend ha ... read more

By Kavita Patel & Andrew Stilton
24th February 2012 13:02 It is likely that there will be a continuing move towards investment funds consolidation over the next few years, particularly venture capital trusts (VCTs) and conventional investment trusts. In the case of VCTs, this is likely to result, in part, from proposed changes to the VCT rules which were set out in the draft 2012 Finance Bill published in December ... read more

By Fiona Le Poidevin
23rd February 2012 09:56Guernsey has an investment fund industry with a heritage that stretches back half a century.  The sector has seen a gradual yet sustained shift where the balance of business has moved from being largely retail, equity-traded/cash-based schemes to predominantly institutional, alternate and niche funds.  This experience means that the Island has built a wealth of expertise ... read more

By Jake Powers
20th February 2012 09:24Investors have been acquiring businesses and making minority investments in privately held companies since the dawn of the industrial revolution.  However with a few exceptions, private equity in the first half of the 20th century was the domain of wealthy individuals and families. Early H ... read more

By Dezan Shira & Associates
17th February 2012 12:07Local governments of several Chinese coastal cities are offering further incentives to equity investment enterprises, as private equity (PE) investment has emerged as one of the most important capital-raising avenues for small and medium-sized enterprises in those areas. Shenzhen: PE Development Fund ... read more

By Ita Mc Ardle
16th February 2012 10:21 AIFMD - Isle of Man assured and confident that it can be part of the structure from initiation. In the wake of the financial crisis that exploded from 2008 onwards and the effects of that on funds one issue has been the subject of harsh exposure.  That is the corporate governance of funds suffering exposures and, more pa ... read more

By Claire Keeney
15th February 2012 10:10Given European wide austerity measures and economic uncertainty, it is expected that 2012 will be a difficult year for the commercial and retail property fund sectors.  The sovereign debt and financial crisis continues to negatively impact financial markets, specifically within Euro dominated countries in the Eurozone.  Relative inaction by some European policymakers app ... read more

By Nicolas Palate
14th February 2012 09:59Despite the current economic slowdown, Private Equity remains a key feature of the economic landscape, playing a major role in the business economy as it represents a fundamental source of support to unlisted companies, throughout their lifecycle.  It also permits direct and indirect investment in and promotion of innovation and new technologies, and as a result stimulates growth ... read more

By Steven T. Kolyer
13th February 2012 09:52 The scope and volume of credit and credit intermediation services being provided by banks and banking institutions has been going through a period of stress and contraction while the need for such services continues to exist and, in many markets, grow.  Opportunities exist, and will continue to expand, for non-banks – particularly private, unregulated funds a ... read more

By Zeeshan A. Ahmedani & Salim Azzam
9th February 2012 10:40 Introduction Foreign firms marketing securities to local investors in countries of the Gulf Cooperation Council (the "GCC") (in particular, Bahrain, Kuwait, Oman, Qatar and the  United Arab Emirates) are subject ... read more

By James Lasry
8th February 2012 10:02 After nearly seven years, Gibraltar’s Experienced Investor Fund regime is being updated and modernised in a continuation of the partnership between the industry, the Financial Services Commission (the FSC or Regulator) and the Government of Gibraltar.  Prior to 2005, Gibraltar’s fund industry comprised a handful of funds regulated under the, then, F ... read more

By Malcolm Preston, Lauren Koopman & Phil Case
2nd February 2012 10:29The evolution of the sustainability agenda Corporate response to sustainability issues has evolved as companies recognize the fi­nancial impacts.  Sustainable development - the notion of being able to continue current operations indefinitely - requires the concurrent management of economic ... read more

By Robyn Schofield
1st February 2012 10:17 With a flat corporate tax rate of 30% (applying to both revenue and capital gains), Australia is far removed from the zero or low tax jurisdictions traditionally considered to be "tax havens".  Nonetheless, the Australian Government has long desired to establish Australia as a financial services hub and the past decade has s ... read more

By Prachi Loona & Dhaval Vussonji
27th January 2012 10:45 In a move to boost investments and increase investor base in times of significant foreign outflows and rupee volatility, in August 2011, Qualified Foreign Investors (QFIs) were allowed to invest in the units of mutual funds.  This was taken a step further when the Finance Ministry vide its press release dated 1st ... read more

By Svetlana London, Alexander Yurchik & Victoria Semernaya
26th January 2012 10:47 Introduction Looking back over the past three years we can see that the securities legal framework is constantly improving in Russia.  Various changes and innovations were introduced in 2009 – 2010.  Having started with ... read more

By Andrew Bates
24th January 2012 09:40 Notwithstanding the ongoing international economic crisis, the Irish funds industry continues to thrive with latest industry statistics highlighting that Irish domiciled fund assets have now passed the Euro 1 trillion mark.  New fund launches have steadily increased, with many existing industry participants launching alternative type ... read more

By Dezan Shira & Associates
18th January 2012 09:48Much has been made of comparisons between China and India, much of it driven by the fact that the two nations are (occasionally reluctant) neighbors, their size, population and simultaneous development and progression. For two nations so large, sometimes at polar opposites, yet at the same time offering potentially comparable market sizes, is unprecedented in history. ... read more

Dr Katherine Woodthorpe
12th January 2012 10:40The vital role that innovation plays in our nation’s development is, rightly, well recognised. But what is not well understood is how management expertise and capital move ideas and concepts from laboratories, garages and backrooms into innovative, commercially viable products and services, adding to the economic well-being ... read more

Dezan Shira & Associates
5th January 2012 10:28 China’s National Development and Reform Commission and Ministry of Commerce promulgated the 2012 Foreign Investment Industrial Guidance Catalog on December 24, 2011, which will take effect from January 30, 2012. The new Catalog replaces the previous version released in 2007. ... read more

By Calum Mckenzie
14th December 2011 09:51The BVI has long been recognised as the ‘go-to’ domicile for the incorporation of offshore companies. There is no question that this can be attributed in large part to the basic tenet of the jurisdiction being tax neutral, highly cost efficient and offering a good degree of privacy within which to conduct business affairs. However many other far less successful jurisdi ... read more

By Chris Devonshire-Ellis
30th November 2011 10:54This is my executive summary following the Economist Newspaper’s annual China Summit in Beijing. Kindly note the views expressed are my own, and are derived from my own experience of running a MNC business in China, as well as taking into account comments made during the summit. They do not reflect the views of, are not contributed to, and are not endorsed by the Economist Group ... read more

By Maarten Roos
22nd November 2011 10:33Part I: How to choose between a Representative Office, a Joint Venture and a Wholly-owned Subsidiaries In 2008 when the global financial crisis struck, European companies put on hold most of their plans to develop the business in China – preservation of cash was a greater priority. The recent unc ... read more

By Chris Devonshire-Ellis
21st November 2011 09:42Both Hong Kong and Singapore provide viable domiciles for a holding company…But what are the differences? Singapore doesn’t usually come onto the radar for most folks when it comes to holding China investments, but in the changing dynamic ... read more

By Oscar A. Mersan
17th November 2011 10:20The Financial Times Business Ltd., stated in “The Banker Supplement” September 2010 Edition: “PARAGUAY: GREEN AND GROWING” and the Sudameris Bank of the Abbey Group inserted in said Supplement an ad highlighting titled “THE SUN S ... read more

By Anne Todd
16th November 2011 10:582010 – 2011 was a very busy period for the advisory committee and legislators who engaged in amending the Cayman Islands Companies Law with an eye to removing the stumbling blocks which have troubled lawyers and clients alike in recent times.  The Companies (Amendment) Law, 2011 (the "Law") resolves these issues and some of the most important changes are highl ... read more

By Thierry Afschrift
15th November 2011 09:23The global economic crisis is primarily due to the financial crisis which started on 2007, before reaching its higher point during the second half of 2008. As for the purely financial crisis, it attacked the capacity, and will, of the banks to lend money, a fact that had negative repercussions on the consumers and, generally, on the economic activity. ... read more

By Michael R. Littenberg
14th November 2011 09:43The NASDAQ OMX Group recently received approval from the SEC to launch its new listing market, the BX Venture Market.  The BX Venture Market is intended to serve as a new listing alternative for early stage and smaller companies that do not qualify for a NASDAQ Capital Market listing, bridging the gap between the over-the-counter markets and NASDAQ's existing listing venues. ... read more

By Conrad Chan & Vivian Tse
10th November 2011 09:29Hong Kong’s proximity to the PRC market, sound legal system and regulatory framework, free flow of capital and advanced clearing and settlement infrastructure have made it an attractive listing place for companies which have strong PRC connections or are planning to tap into the PRC market. There are various ways for compani ... read more

By Céline Fillistorf
9th November 2011 10:28Private Equity is associated with a number of things - illiquidity, excess remuneration, high returns and high risk, exclusivity, entrepreneurship, Facebook, and the list goes on depending whom one asks.  The asset class has been around long enough to be firmly established as a leader in the investment arena, producing higher long-term performance than any other asset class. & ... read more

By Lance Jon Kimmel
2nd November 2011 11:05One of the bright spots on the public company scene in recent years has been the rise of Chinese companies going public in the U.S. The sheer size of the ever-growing Chinese domestic market was certain to present an almost endless supply of companies with millions of dollars of predictable revenue and profit.  It seemed too good to be true and by mid- to late-2010, it started to ... read more

By Ichino Brugnatelli e Associati
31st October 2011 10:10Although Italy is often considered as a peripheral Country, its economy is still one of the most developed in the world.  It employs millions of people across diverse industries: no need to list world famous Italian brands and products. Thanks to its mild climate, natural beauty and rich history and culture, this Country is t ... read more

By Nico Abel
26th October 2011 10:32For many decades, Germany has consistently experienced significant inbound investment and it is widely recognised that foreign investment has been a considerable contributor to growth and prosperity in Germany.  Investment from the US has always been strong and continues to account for a large share of foreign investment.  More recently, cash rich strategic investors fro ... read more

By Sohail Jaffer
21st October 2011 09:34While the financial sector is recovering slowly, Shari’ah compliant finance is rising as one of the fastest growing segments of global finance.  Estimated at USD1trillion currently, the alternative finance has been growing exponentially at double digit rates for over a decade and has spread across all financial components including insurance.  The nascent insur ... read more

By Timothy W. Mungovan, Stephen LaRose and Joel Cavanaugh
5th October 2011 09:07Investors in Madoff feeder funds who redeemed capital prior to the disclosure of the fraud in December 2008 (“Redeeming Investors”) face increasing litigation risk.  While almost three years have passed since the Ponzi scheme was exposed, Redeeming Investors should not assume that the passage of time has reduced their litigation risk.  Redeeming Inves ... read more

By Catarina Goncalves
21st September 2011 10:42Economy diplomacy will play a big part on the recovery of the Portuguese economy for the next few years.  Portugal is focused on positioning itself as a hub for investments in emerging economies, such as Angola, China, India and Brazil, given the existing strong historic links, not to mention the same language in some of the cases. Strong treaty ... read more

20th September 2011 10:00Both Chinese and European newspapers have been reacting strongly to a land purchase plan in Iceland announced recently by Chinese industrialist Huang Nubo, but in different ways. While Chinese newspapers put up proud headlines highlighting the potential deal that would take up a staggering 0.3 percent of Iceland, European countries questioned whether the business plan is a purely commerci ... read more

By Andrei Dumitrache
19th September 2011 10:00Whenever called to give a few words on doing business in Romania, I always dedicate a substantial part of that to the Romanian corporate tax system.  The reason is besides any personal bias, Romania does not lack a certain “tax appeal” making it a desirable target for entrepreneurs with an appetite for emerging markets.  ... read more

By Simon Sheung and Lena Xia of Asia Briefing
16th September 2011 10:10With China’s economic rise, a new type of consumer is being born. Incomes are rising, consumers are feeling increasingly optimistic about their financial futures and new consumer demographics are emerging. The Global Financial Crisis in 2008 had caused economic downturn in most of the world, yet it did virtually nothing to c ... read more

By Dezan Shira & Associates
31st August 2011 09:17As part of its World Trade Organization accession process, China ratified regulations that permit foreign companies to establish fully operational wholly foreign-owned enterprises that can distribute, act as an agent, retail and wholesale domestically, source domestically, and import and export, and as of 2005, do so all over China.  These companies, known as foreign-invested com ... read more

Dezan Shira & Associates
24th August 2011 09:10Following the principles in the State Council document “Opinions on Further Improving the Work of Utilizing Foreign Investment,” China’s National Development and Reform Commission (NDRC) has recently added a number of changes to the “Foreign Investment Catalog.” Initially introduced by the NDRC and the Ministry of C ... read more

By Carlo Fossati, Franco Tofacchi & Maria Clavarino
8th August 2011 10:39Italy normally reminds you of not worrying, being happy, easy life-style, and, if anything, holidays.  It is still a destination reached by people from all over the world either for business or for leisure or, possibly, for both.  Furthermore, it has one of the highest per capita incomes in Europe, especially in its most affluent regions.  Sounds like you can be ... read more

By Jason E. Brown and Lisa M. Ragosta
3rd August 2011 11:56Non-U.S. private fund managers traditionally had been exempted from registration as investment advisers with the U.S. Securities and Exchange Commission (“SEC”) due to the “private adviser exemption” under Section 203(b)(3) of the Investment Advisers Act of 1940 (the “Advisers Act”).  Under this exemption, an adviser was ... read more

27th July 2011 11:39The wholly foreign-owned enterprise has become the investment vehicle of choice for the international investor wanting to manufacture service or trade in China.  In addition to the WFOE’s expansive business scope, its unrivaled popularity arises from multiple other factors:   100 percent foreign ownership and ... read more

By Ahmed Ali Alvi & Samer Hijazi
20th July 2011 10:09The need for Islamic Insurance: The growth of conventional life and non-life insurance remains underdeveloped in the Muslim world. This is because conventional insurance incorporates several elements that are outlawed by the Shariah. For instance, it has an element of gharar, or uncertainty, embedded in th ... read more

By Kavita Patel
27th June 2011 13:38Corporate finance has a huge part to play in the success of the UK energy market not least because bank funding can be difficult to obtain for renewable projects – it is common knowledge that major UK banks have shown a reluctance to be involved in this market.  Combined with the fact that there are very exciting profits available, Martineau’s city-facing Corp ... read more

By Nusrat Hassan & Santosh Pai
22nd June 2011 11:48Small and Medium Enterprises constitute almost 90% of the industrial enterprises in India.  Together they contribute 45% of the country’s industrial output and 40% of its total exports.  This vast segment is comprised of private enterprises which report annual turnover figures between Rs. 10 crore (US$ 2.2 million) and Rs. 700 crore (US$ 155 million).   ... read more

By Robert L. Kohl
12th May 2011 18:42Two sections of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which attempt to implement social policy goals by means of public company disclosure, will impose particularly costly compliance burdens on these companies.      ... read more

By Jake Powers
27th April 2011 23:28Strategies to profit from a bubble Playing the stock markets is never an easy game with fortunes won and lost before someone could even say diversification.  On the point of diversification it can be a tricky thing on one hand you spread your eggs and don’t overexpose your holdings to too much risk but on the other if one ... read more

By Jake Powers
25th April 2011 12:18Bubbles explained A bubble is an economic cycle which is characterised by rapid expansion then a severe contraction.  Bubble’s are generally caused by increasing equity prices followed by a massive price drop and significant sell offs.  They can form in a number of different areas from economies, stock markets, s ... read more

By Nasareo Lazzaro
18th April 2011 21:35Modern day technology has had a massive impact on the way we live our lives and is constantly developing and changing the world around us.  The people behind the latest technological advancements are usually backed by wealthy investors and high profile institutions.& ... read more

By E.L. Kateb
29th March 2011 10:29With Islamic finance being an emerging sector of the overall economic system, it is rapidly expanding and is now considered to be worth over $1 trillion globally, growing at a rapid rate of 12 to 15% per annum.  With £18 billion of the UK’s annual income generated through Islamic finance.(1)  Its growth is not only limited to the Gulf States as invest ... read more