The Chinese state-owned property rights (SOPRs) hold a significant position in the Chinese economy; meanwhile, they are subject to PRC government's stringent and special scrutiny and administration. Based on the PRC law and practice governing SOPRs and for your general reference purpose only, Han Yi lawyers have prepared the attached memorandum to briefly summarize some of the major PRC legal issues related to SOEs and SOPRs in M&A transactions.