Following the issuance and implementation of the Opinions of the State Council on Encouraging and Guiding the Healthy Development of Private Investment (Guo Fa [2010] No.13), thirteen Ministries and Commissions jointly released the Circular on Printing and Distributing the Opinions of Encouraging and Guiding Private Enterprises to Actively Engage in Outbound Investment (“Outbound Investment Circular”) on June 29, 2012, to boost outbound investment by private enterprises. In this Outbound Investment Circular, various government departments or agencies such as banks, foreign exchange authorities, tax and customs bureaus are called on to strengthen their support for outbound investment by domestic private enterprises. 

I. Macroscopic guidance 

The relevant government agencies are required to coordinate their support and guidance to private enterprises and adopt comprehensive measures to improve the consistency of the government policies. 

II. Financing 

Domestic banks are encouraged to provide working capital loans, syndicated loans and other forms of financing to support private enterprises’ outbound investment and actively explore different approaches to project financing, such as mortgaging or pledging outbound shares or assets. Moreover, private enterprises are encouraged to issue RMB and Foreign-denominated bonds, to be listed in the capital market both in and out of China, and establish foreign equity investment funds. 

III. Tax 

Tax policies will be improved to strengthen support of private enterprise. Moreover, policies of granting tax credits to enterprises which are required to pay income tax offshore will be actively implemented. 

• Circular on Printing and Distributing the Opinions on Encouraging and Guiding Private Enterprises to Actively Engaging in Overseas Investment 
• Issuing Authority: the State Administration for Industry and Commerce; the State Administration of Foreign Exchange; the Ministry of Finance; the Ministry of Commerce; the Ministry of Industry and Information Technology; the Ministry of Foreign Affairs; the General Administration of Customs; the National Development and Reform Commission; the China Insurance Regulatory Commission; the China Banking Regulatory Commission; the China Securities Regulatory Commission; the People's Bank of China; the General Administration of Quality Supervision, Inspection and Quarantine 
• Date of Issuance: June 29, 2012 / Effective date: June 29, 2012