Thanks to the buoyant economy and the strength of the Chinese renminbi (RMB) against US dollars, China has been in the spotlight of private equity investment for longer than a decade. There are primarily two private equity deal structures, i.e. offshore deal structure and onshore deal structure. In the past, investors have been accustomed to consummating transactions through offshore deal structure to overcome the inconvertibility of RMB and China’s market-entry restrictions, writes Steven Wei Su, a partner at Guo Lian PRC Lawyers in Beijing.
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