The Chinese State Council's new regulations on outbound investment: Investors who fail to fulfill the required procedures for overseas investment registration will be ordered to make corrections and have illegal gains confiscated.
Article 27 of the “Regulations on Outbound Investment” issued by the State Council provides that: those who fail to complete the overseas investment record-filing procedures as required, or who apply for record-filing using false materials, shall be ordered to make corrections, have their illegal proceeds confiscated, and be fined 1‰–5‰ of the investment amount; if they refuse to make corrections, their investment activities shall be stopped, they shall be given a deadline to dispose of their shares/assets, and the fine shall be increased to 5‰–10‰; the persons directly in charge and other persons directly responsible shall be fined RMB 20,000–50,000. Those who obtain record-filing by bribery, deception, or other improper means shall have the record-filing revoked, have their illegal proceeds confiscated, and be fined 1‰–5‰; investors who have already invested shall have their investment activities stopped and be given a deadline to dispose of their shares/assets, with a fine of 5‰–10‰, and the relevant persons responsible shall be fined RMB 20,000–50,000.