Advisory Board

  • Cai Hongbin
  • Peking University Guanghua School of Management
  • Peter Clarke
  • Barry Diller
  • IAC/InterActiveCorp
  • Fu Chengyu
  • China National Petrochemical Corporation (Sinopec Group)
  • Richard J. Gnodde
  • Goldman Sachs International
  • Lodewijk Hijmans van den Bergh
  • De Brauw Blackstone Westbroek N.V.
  • Jiang Jianqing
  • Industrial and Commercial Bank of China, Ltd. (ICBC)
  • Handel Lee
  • King & Wood Mallesons
  • Richard Li
  • PCCW Limited
  • Pacific Century Group
  • Liew Mun Leong
  • Changi Airport Group
  • Martin Lipton
  • New York University
  • Wachtell, Lipton, Rosen & Katz
  • Liu Mingkang
  • China Banking Regulatory Commission (CBRC)
  • Dinesh C. Paliwal
  • Harman International Industries
  • Leon Pasternak
  • BCC Partners
  • Tim Payne
  • Brunswick Group
  • Joseph R. Perella
  • Perella Weinberg Partners
  • Baron David de Rothschild
  • N M Rothschild & Sons Limited
  • Dilhan Pillay Sandrasegara
  • Temasek International Pte. Ltd.
  • Shao Ning
  • State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC)
  • John W. Snow
  • Cerberus Capital Management, L.P.
  • Former U.S. Secretary of Treasury
  • Bharat Vasani
  • Tata Group
  • Wang Junfeng
  • King & Wood Mallesons
  • Wang Kejin
  • China Banking Regulatory Commission (CBRC)
  • Wei Jiafu
  • Kazakhstan Potash Corporation Limited
  • Yang Chao
  • China Life Insurance Co. Ltd.
  • Zhu Min
  • International Monetary Fund

Legal Roundtable

  • Dimitry Afanasiev
  • Egorov Puginsky Afanasiev and Partners (Moscow)
  • William T. Allen
  • NYU Stern School of Business
  • Wachtell, Lipton, Rosen & Katz (New York)
  • Johan Aalto
  • Hannes Snellman Attorneys Ltd (Finland)
  • Nigel P. G. Boardman
  • Slaughter and May (London)
  • Willem J.L. Calkoen
  • NautaDutilh N.V. (Rotterdam)
  • Peter Callens
  • Loyens & Loeff (Brussels)
  • Bertrand Cardi
  • Darrois Villey Maillot & Brochier (Paris)
  • Santiago Carregal
  • Marval, O’Farrell & Mairal (Buenos Aires)
  • Martín Carrizosa
  • Philippi Prietocarrizosa & Uría (Bogotá)
  • Carlos G. Cordero G.
  • Aleman, Cordero, Galindo & Lee (Panama)
  • Ewen Crouch
  • Allens (Sydney)
  • Adam O. Emmerich
  • Wachtell, Lipton, Rosen & Katz (New York)
  • Rachel Eng
  • WongPartnership (Singapore)
  • Sergio Erede
  • BonelliErede (Milan)
  • Kenichi Fujinawa
  • Nagashima Ohno & Tsunematsu (Tokyo)
  • Manuel Galicia Romero
  • Galicia Abogados (Mexico City)
  • Danny Gilbert
  • Gilbert + Tobin (Sydney)
  • Vladimíra Glatzová
  • Glatzová & Co. (Prague)
  • Juan Miguel Goenechea
  • Uría Menéndez (Madrid)
  • Andrey A. Goltsblat
  • Goltsblat BLP (Moscow)
  • Juan Francisco Gutiérrez I.
  • Philippi Prietocarrizosa & Uría (Santiago)
  • Fang He
  • Jun He Law Offices (Beijing)
  • Christian Herbst
  • Schönherr (Vienna)
  • Lodewijk Hijmans van den Bergh
  • De Brauw Blackstone Westbroek N.V. (Amsterdam)
  • Hein Hooghoudt
  • NautaDutilh N.V. (Amsterdam)
  • Sameer Huda
  • Hadef & Partners (Dubai)
  • Masakazu Iwakura
  • TMI Associates (Tokyo)
  • Christof Jäckle
  • Hengeler Mueller (Frankfurt)
  • Michael Mervyn Katz
  • Edward Nathan Sonnenbergs (Johannesburg)
  • Handel Lee
  • King & Wood Mallesons (Beijing)
  • Martin Lipton
  • Wachtell, Lipton, Rosen & Katz (New York)
  • Alain Maillot
  • Darrois Villey Maillot Brochier (Paris)
  • Antônio Corrêa Meyer
  • Machado, Meyer, Sendacz e Opice (São Paulo)
  • Sergio Michelsen Jaramillo
  • Brigard & Urrutia (Bogotá)
  • Zia Mody
  • AZB & Partners (Mumbai)
  • Christopher Murray
  • Osler (Toronto)
  • Francisco Antunes Maciel Müssnich
  • Barbosa, Müssnich & Aragão (Rio de Janeiro)
  • I. Berl Nadler
  • Davies Ward Phillips & Vineberg LLP (Toronto)
  • Umberto Nicodano
  • BonelliErede (Milan)
  • Brian O'Gorman
  • Arthur Cox (Dublin)
  • Robin Panovka
  • Wachtell, Lipton, Rosen & Katz (New York)
  • Sang-Yeol Park
  • Park & Partners (Seoul)
  • José Antonio Payet Puccio
  • Payet Rey Cauvi (Lima)
  • Kees Peijster
  • COFRA Holding AG (Zug)
  • Juan Martín Perrotto
  • Uría & Menéndez (Madrid/Beijing)
  • Philip Podzebenko
  • Herbert Smith Freehills (Sydney)
  • Geert Potjewijd
  • De Brauw Blackstone Westbroek (Amsterdam/Beijing)
  • Qi Adam Li
  • Jun He Law Offices (Shanghai)
  • Biörn Riese
  • Jurie Advokat AB (Sweden)
  • Mark Rigotti
  • Herbert Smith Freehills (Sydney)
  • Rafael Robles Miaja
  • Robles Miaja (Mexico City)
  • Alberto Saravalle
  • BonelliErede (Milan)
  • Maximilian Schiessl
  • Hengeler Mueller (Düsseldorf)
  • Cyril S. Shroff
  • Cyril Amarchand Mangaldas (Mumbai)
  • Shardul S. Shroff
  • Shardul Amarchand Mangaldas & Co.(New Delhi)
  • Klaus Søgaard
  • Gorrissen Federspiel (Denmark)
  • Ezekiel Solomon
  • Allens (Sydney)
  • Emanuel P. Strehle
  • Hengeler Mueller (Munich)
  • David E. Tadmor
  • Tadmor & Co. (Tel Aviv)
  • Kevin J. Thomson
  • Barrick Gold Corporation (Toronto)
  • Yu Wakae
  • Nagashima Ohno & Tsunematsu (Tokyo)
  • Wang Junfeng
  • King & Wood Mallesons (Beijing)
  • Tomasz Wardynski
  • Wardynski & Partners (Warsaw)
  • Xiao Wei
  • Jun He Law Offices (Beijing)
  • Xu Ping
  • King & Wood Mallesons (Beijing)
  • Shuji Yanase
  • OK Corporation (Tokyo)
  • Alvin Yeo
  • WongPartnership LLP (Singapore)

Founding Directors

  • William T. Allen
  • NYU Stern School of Business
  • Wachtell, Lipton, Rosen & Katz
  • Nigel P.G. Boardman
  • Slaughter and May
  • Cai Hongbin
  • Peking University Guanghua School of Management
  • Adam O. Emmerich
  • Wachtell, Lipton, Rosen & Katz
  • Robin Panovka
  • Wachtell, Lipton, Rosen & Katz
  • Peter Williamson
  • Cambridge Judge Business School
  • Franny Yao
  • Ernst & Young

Monthly Archives: June 2016

CHINESE UPDATE – NDRC Will Deregulate Outbound Investment Review and Relax Sensitive Project Review

Editor’s Note: Contributed by Ms. Fang He, a partner at JunHe and a member of XBMA’s Legal Roundtable. Ms. He has broad experience in cross-border M&A, private equity, trust and assets management. This article was authored by Ms. Fang He and Ms. Runze Li. Ms. Li is an associate at JunHe.


  • NDRC launches Draft for Comment for Order 9, which proposes further relaxation measures on PRC outbound investment.
  • The controversial “road-pass” requirement might be alleviated.
  • Approval procedure and application documents for the approval of Sensitive Projects may be simplified.

Main Article

Chinese National Development and Reform Commission (“NDRC“) launches Draft for Comment of Measures for Administration of Approval and Filing of Outbound Investment Projects (“境外投资项目核准和备案管理办法” in Chinese, the “NDRC Order 9“) (the “Draft for Comments“) on April 13, 2016.  The Draft for Comments (1) alleviate “road-pass” requirement for outbound acquisition/bidding project; and (2) relaxes approval procedure and document requirements for approval of Sensitive Projects.  Should Draft for Comments be passed, PRC outbound investment administration will be further simplified after a series of deregulation measures since 2014.

Below are the key revisions in the Draft for Comments:

I. Alleviation of Road Pass

According to NDRC Order 9, a PRC investor who intends to conduct outbound acquisition (including equity acquisition and asset acquisition) or outbound bidding with its investment at or above USD 300 million shall file a “project information report” to NDRC for approval before it carries out any “substantial works” (i.e., executing binding agreement, proposing biding offer, filing application to the foreign authorities, etc.).  If NDRC deems such investment project “in compliance with PRC outbound investment policies”, NDRC will grant a “confirmation letter” (“确认函” in Chinese) to the PRC investor (Article 10).  Otherwise, if the PRC investor carries out substantial works without obtaining the “confirmation letter”, NDRC may circulate a criticism notice against it and order it to seek ratifications.  And, NDRC, in conjunction with other authorities, may impose further punishment against such PRC investor, if its failure to obtain the confirmation letter has a serious nature and has caused serious damage to the state interest (Article 29).

In practice, “confirmation letter” is dubbed as “road-pass”, because such PRC investor may not conduct substantial works without it.

The Draft for Comments alleviate the “road-pass” requirement.  According to Article 10 of Draft for Comments, after a PRC investor files the project information report, NDRC will issue an “acknowledgement letter” (“收悉函” in Chinese) instead of a “confirmation letter”.  Since the Draft for Comments deletes the wording – “complies with PRC outbound investment policies”, we understand that NDRC will only conduct formality review rather than substantive review into the project information report.  The Draft for Comment also does not require the PRC investor to obtain the “acknowledgement letter” before carrying out any substantive works, rather, the PRC investor may carry out substantive works right after it “submits” the project information report (Article 29).  All these proposed revisions change “road-pass” requirement from a substantive process into a formality process.

Alleviation of “road-pass” is a strong message to the market that NDRC is easing the regulation over the outbound investment projects.

II. Relaxation of Sensitive Project Review

According to NDRC Order 9, outbound investment projects involving sensitive state/region or sensitive industry (“Sensitive Projects“) are subject to approval process, while other projects are subject to filing process (Article 7and Article 8).  The Draft for Comments relaxes the approval procedure and document requirements for the approval of Sensitive Projects.

(a) Level: Deletion State Council Approval

According to NDRC Order 9 (including Amendment to NDRC Order 9 launched by NDRC in December, 2014), Sensitive Projects shall be approved by NDRC, among which, Sensitive Projects at or above USD 2 billion shall be preliminarily reviewed and opinioned by NDRC and then be submitted to the State Council for approval (Article 7).  However, NDRC Order 9 is silent on the time limit for State Council’s verification procedure, thus in practice, the State Council approval adds much uncertainty to the project timeline.

The Draft for Comments deletes the State Council approval procedure.  After revision, NDRC itself can approve all Sensitive Projects, in disregard of the monetary value (Article 7).

(b) Document: Removal of Bank Loan Letter of Intent

The Draft for Comment removes the letter of intent for bank loan from the application document list for approval, which simplifies the document preparation process.

To conclude, the Draft for Comment is a further step to simplify PRC outbound administration.  We are looking forward to the final released version, and will keep you updated in this regard.

The views expressed herein are solely those of the author and have not been endorsed, confirmed, or approved by XBMA or any of the editors of XBMA Forum, nor by XBMA’s founders, members, contributors, academic partners, advisory board members, or others. No inference to the contrary should be drawn.

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