Comparative Analysis between the different forms of Investment Vehicles

This article is intended to provide a general guide to the subject matter. Specific advice should be sought about individual circumstances. Further information or advice may be obtained from Linklaters & Paines, Hong Kong office, 14th Floor, Alexandra House, Chater Road, Hong Kong; telephone: (852) 2842 4888; fax: (852) 2810 8133; contact David Mullarkey or Jeremy Parr.

1. Between an equity joint venture and a cooperative joint venture:

An equity joint venture is registered in the PRC as a separate legal entity, whereas a cooperative joint venture may not necessarily be so, depending on whether it is a "true" cooperative venture or a "hybrid" cooperative venture. In an equity joint venture, the investors' capital contributions, in cash or in kind, must be capable of being expressed in monetary terms, and the risks, profits and number of appointments to the board of directors are all in proportion to the parties' capital contribution ratios. In a cooperative joint venture,