GREY:ADEXF - Post by User
Comment by
rpdelucaon Jan 09, 2012 5:05pm
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Post# 19383765
RE: XinXing Hong Kong
RE: XinXing Hong Kong This is a very common practice in terms of setting up subsidiaries in order to accomdate foreign invesment. It does look like the Department of Commerce in China wanted the debenture to go through the same process as any other investment and insisted on it...hence the delay. I think with the Chinese, there are no special rules for anyon. I agree GAG that a simple debenture investment should not take 2.5 months.
IF you look at a giant like Wisco, they have numerous subsidiaries presently in place and are quite use to foreign trade and investment. XXP is now doing the same. One thing is for certain...dealing with the Chinese is a long drawn out process
Just thinking out loud here, but the purpose of the subsidiary is most definitely to limited liability. No so much for a simple CD, but for the proposed mining operation