When Private Equity Meets China: Clashes between Locked-In Transactional Models and Chinese Regulatory Regime
(2010) 28(4) Company and Securities Law Journal 283-89
7 Pages Posted: 29 Sep 2013
Date Written: September 28, 2013
The typical private equity transactional model of acquiring preferred shares is difficult to implement in China. The concepts of shares, authorised capital and issued capital are not used in limited liability company under Chinese company law. This article discusses how international private equity investors make deals in China by designing innovative transactional models as well as overcoming Chinese regulatory hurdles.
Keywords: Chinese regulatory regime, locked-in transactional model, private equity investment into China
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