China alert - Issue 3, March 2012
On 20 February 2012, the State Administration of Foreign Exchange (“SAFE”) issued Hui Fa [2012] No. 7 (“Circular 7”) to replace Hui Zong Fa [2007] No. 78 (“Circular 78”) and Hui Zong Fa [2008] No. 2 (“Circular 2”). Issuance of Circular 7 clarifies the procedural requirements on SAFE registration of share-based incentive plans previously stipulated by Circular 78 from a practical perspective, whilst extending coverage of the application of the registration requirements and putting in additional measures for timely on-going monitoring.