New Regulation from the Chinese State Council on Overseas Investment: Investors who fail to complete the prescribed overseas investment approval procedures shall be ordered to rectify the situation and have their illegal gains confiscated.

BlockBeats News, June 1st. The State Council of China issued the "Regulations of the State Council on Outbound Investment," where Article 27 stipulates that if an investor fails to go through the record-filing procedures for outbound investment as required, or applies for relevant record-filing with false materials or by concealing true information, the record-filing authority shall order correction, confiscate the illegal gains, and impose a fine of more than 0.1% but less than 0.5% of the investment amount; if the investor refuses to make corrections, they shall be ordered to cease the investment activities, be given a time limit to dispose of shares and assets, and be fined more than 0.5% but less than 1% of the investment amount; the directly responsible senior management personnel and other directly responsible personnel shall be fined more than 20,000 yuan but less than 50,000 yuan.

If an investor obtains the outbound investment record-filing through bribery, deception, or other unfair means, the record-filing authority shall revoke the record-filing document, confiscate the illegal gains, and impose a fine of more than 0.1% but less than 0.5% of the investment amount; if the investment has already been made, they shall be ordered to cease the investment activities, be given a time limit to dispose of shares and assets, and be fined more than 0.5% but less than 1% of the investment amount; the directly responsible senior management personnel and other directly responsible personnel shall be fined more than 20,000 yuan but less than 50,000 yuan.