PRC Company Invested in HK or Macau

“Mainland enterprises invest in Hong Kong and Macau” refers to:     Mainland enterprises establish legal entity in Hong Kong and/or Macau, subject to the respective jurisdiction, for the purposes of trade, project contracting, labor cooperation, manufacturing, transportation, tourism, services, research and development, investment, science and technology enterprises, etc. It also includes those from Mainland enterprise which establish entities in Hong Kong and/or Macau, and other countries and regions for setting up business(es).

a) The way to start business: New establishment (including sole proprietorship, joint
     venture, cooperation, etc.), acquisitions, mergers, equity share, funding, shares
     exchange etc.

b) Relevant Approval Authority: Ministry of Commerce approves the investments
     of Mainland enterprises in Hong Kong and/or Macau (other than financial
     business).   Provincial government (hereinafter referred to as "The Provincial
     Commerce Department") commissioned by the Ministry of Commerce, to
     conduct a preliminary review or pre-approval.

     (1) Mainland enterprises establish legal entity in Hong Kong and/or Macau
           for the purpose of involving in indirect public offering must be approved 
           by the Ministry of Commerce. For the others, it is commissioned by the
           provincial commerce department under the Ministry of Commerce.

     (2) State enterprises start business(es) in Hong Kong and/or Macau for 
           investment are subject to the approval of the Ministry of Commerce.

     (3) Upon the district businesses obtained approval from the provincial
           commerce department, the Ministry of Commerce will issue a 
           certificate of "Mainland Enterprises in Hong Kong and Macau -
           Investment Approval Certificate".

c) The enterprises, after obtaining the approval of the certificate and the 
     approval documents, are accountable for applying foreign exchange,
     banking, customs , foreign affairs and other related matters ; and submit
     the statistical information according to relevant regulations to participate in
     overseas investment and foreign investment for joint annual comprehensive 
     performance evaluation.

d) Approved business in Hong Kong and/or Macau, upon registration, the
     registration document shall be submitted to the Ministry of Commerce and
     the State Council of Hong Kong and Macau for the record.  At the same time,
     they need to go to the State Government in Hong Kong and Macau for