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Uncertainty over new 'beneficial ownership' clause for Chinese FDI

This is particularly important as Chinese companies often have opaque beneficial structures and have unbridled access to our market and other national information

FDI, INVESTMENT, investment, foreign investment, foreign direct investment, FPI, dollar inflow, GROWTH, MARKETS, FUNDS, SHARES, DEMAND, GROWTH, mutual fund, fund, stocks
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Official data shows that historical investments from China remain a lowly $ 2.3 billion as of December, 2019

Subhayan ChakrabortyNeha Alawadhi New Delhi
While the government has mandated that all foreign direct investment (FDI) from China will need to have prior government approval, confusion reigns over how crucial indirect investments from the country will be affected.

The government's sudden move on Saturday to protect domestic firms from hostile takeovers by 'opportunistic foreign firms' as the coronavirus pandemic rages on, have used a curious legal condition for the first time. Globally, the powerful 'beneficial ownership' clause establishes who the ultimate owner of a company is, the extent to which cross ownership is allowed and sets rules on how companies should report on their ownership

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