How low is a “manifestly unreasonable low price”?
In practice courts reference “transfer price below 70% of market price.” The equity “market price” is usually determined by net-asset valuation. If the net-asset value of the equity is RMB 1 million, a transfer below RMB 700,000 may be deemed a “manifestly unreasonable low price.” The lower the price, the more likely the finding.
