On Increasing Forms and Widening Cha-for Introducing Foreign Investment

摘要

It is necessary to change the previous practice of attracting foreign funds by cutting tax rates for and granting preferences to overseas investors. Over the past few years, on the basis of a continued increase in direct investment, the inflow of international capital has displayed such characteristics as focusing on securities in raising money, making investment in ordinary projects and specialization in management. Apart from continuing to increase the use of direct investment forms including the establishment of joint ventures, cooperative businesses and wholly foreign-owned enterprises, we should change our ideas and actively explore new forms such as international leasing and EOT. In particular, we should take the form of indirectly raising funds on a large scale. The form of limited-liability companies causes the concentration of risks, makes it difficult to raise large amounts of funds and restricts the undertaking of large and medium-sized projects. For this reason, in the future we shouldemphasize the adoption of the form of joint-stock, company, limited to bring in more foreign funds. This makes it imperative to standardize enterprise management. In particular, on the basis of the accounting system adapted to internationally accepted practices, we should encourage vigorously and properly enterprises, especially non-state-owned ones, to utilize shares and securities to raise funds on the global capital market. To date, the state has promulgated Rules on Standardizing Shareholding Companies, Special Regulations on Raising Funds abroad by Joint-Stock Companies, limited and the Listing of Such Companies, as well as other laws and regulations, in an effort to speed up the development of the organizational form of joint-stock, limited-liability companies.