Tag Archives: net margin

What do the First Valuation Adjustment Mechanism (VAM) Lawsuits in China Tell Us?

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Analysis on the HF Fund’s lawsuits against Gansu Shiheng and Hong Kong Dia

(By Bai Lituan & Zhang Qianlin) In December 2012, HF Fund Management Co., Ltd. (the “HFF”) filed a lawsuit against Gansu Shiheng Nonferrous Metals Co., Ltd (the “GSNM”), and after being heard by the Supreme People’s Court, the Court stated that the valuation adjustment Mechanism (VAM) would be considered partially valid. This particular case has been seen ups and downs, and now that it has finally been heard, we would like to share our opinions on it within a framework of legal analysis, and hope that it will help clarify any issues presented in the case and thus help to reduce the risks investors typically face.

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Will International Software Company Benefit from China’s New VAT Policy?

— the interpretation on the preferential policy of value-added tax

Recently, the Notice on the Policy of Value-added Tax of Software Product (the “Policy”) was jointly issued by the Ministry of Finance and the State Administration of Taxation of P.R.C., which shall back cover any VAT after 2011.1.1. The stock market reacts positively to the new policy.

However, as far as Bridge IP Commentary knows，the Policy is just the continuation of the past regulations, which include the Policies for the Development of the Software & Integrated Circuit Industries issued in 2000 (the “Policy in 2000”) and the Notice of Policies for Further Development of the Software and Integrated Circuit Industries released in first half of 2011 (the “Notice”). Even so, the introduction of the Policy once again shows the ambition of China government to boost the software industry. And the following is the interpretation on the Policy from Bridge IP Commentary:

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