On 27 April 2005, the People’s Bank of China ("PBOC") promulgated the Measures Governing the Issuance of Financial Bonds on the National Inter-bank Bond Market ("the Measures"). The Measures entered into force as of 1 June 2005 and represent an attempt by China’s central bank to standardise the activities of issuing financial bonds on the national inter-bank bond market ...
China presents enormous opportunities for the wealth management industry. Since the opening up of China’s banking and other financial industries to foreign investments, foreign banks, securities companies, insurers and fund management companies have sought to establish presence in this market through the setting up of representative offices, branches, foreign direct investments and joint venture companies ...
China presents enormous opportunities for the wealth management industry, as the domestic financial market and players develop increasing sophistication. The financial regulators in China are pushing ahead with financial market reforms and regulations, across the equity and bond markets, over banks, insurance companies, securities companies, securities investment fund management companies, trust investment companies and other financial institutions ...
A Chinese commercial bank recently launched an investment product under the Qualified Domestic Institutional Investors scheme (QDII) which takes in Renminbi funds from mainland investors and invests in offshore equity funds, fixed income instruments and money market products denominated in foreign currencies. This is an important breakthrough as previously QDII products from banks only invested in fixed income instruments ...
The People's Bank of China, the Chinese central bank, recently announced principle policies for the financial services sector on outbound investments in overseas markets by Chinese nationals and corporations. These policies are generally regarded as the Qualified Domestic Institutional Investors (QDII) program in the market ...
Offshore Investment of Foreign Currency Assets of Chinese Insurance Companies Following the Provisional Regulatory Measures on Offshore Investment of Foreign Currency Insurance Assets (“Provisional Measures”) issued by the China Insurance Regulatory Commission (“CIRC”) in August 2004 which allow qualifying PRC insurance companies to invest their foreign currency assets (which include proceeds raised through overseas listing) offshore subject to certain limits (please refer to our Client Update
The Labour Law of the People’s Republic of China (“Labour Law”) is applicable to all employment relationships between individuals and enterprises in China. However, local governments of provinces, autonomous regions and municipalities may, and most of them do, issue detailed measures and rules for the implementation of the Labour Law. Such detailed measures are promulgated based on the Labour Law, with changes and specific details made in light of the local conditions ...
The Central Government of the People’s Republic of China (“Mainland”) and the Government of the Hong Kong Special Administrative Region (“Hong Kong”) reached a further understanding regarding the Closer Economic Partnership Arrangement between the Mainland and Hong Kong (“CEPA”) (as discussed in the July 2003 issue of China Legal Update) on 27 June 2006. This supplement, referred to as CEPA IV, further liberalises PRC market access for qualified Hong Kong service suppliers ...
The Central Government of the People’s Republic of China (“the Mainland”) and the Government of the Hong Kong Special Administrative Region (“Hong Kong”) reached a further understanding regarding the Closer Economic Partnership Arrangement between the Mainland and Hong Kong (“CEPA”) on 27 August 2004 ...
The Central Government of the People’s Republic of China (“the Mainland”) and the Government of the Hong Kong Special Administrative Region (“Hong Kong”) reached a further understanding regarding the Closer Economic Partnership Arrangement between the Mainland and Hong Kong (“CEPA”) (as discussed in the July 2003 and November 2003 issues of China Legal Update) on 27 August 2004 ...
The State Administration for Industry and Commerce issued the Regulations for the Administration of the Registration of the Business Scope of Enterprises on 14 June 2004. The Regulations, which entered into effect on 1 July 2004, are applicable to enterprises registered inside China. Business scope The Regulations define the term ¡®business scope as the scope of the business activities in which an enterprise engages ...
The Ministry of Commerce, the National Development and Reform Commission and the State Administration for Industry and Commerce jointly promulgated the Implementing Measures for the Administration of Branded Automobile Sales on 21 February 2005. The Measures, which entered into effect on 1 April 2005, are aimed at bringing more order in the Chinese automobile market ...
On 22 January 2007, the Ministry of Construction and the Ministry of Commerce jointly issued the Regulations for the Administration of Construction Project Service Enterprises with Foreign Investment. Effective 26 March 2007, the Regulations outline the approval process for construction project service enterprises with foreign investment and set out the permissible types of business for these enterprises ...
The Standing Committee of the National People’s Congress passed Amendment (5) to the Criminal Law of the People's Republic of China (the "Amendment") on 28 February 2005. The Amendment was promulgated by President Hu Jintao and became effective on the same date. The Amendment introduces detailed penal provisions on credit card abuse and fraud and on damaging military equipment. We discuss the new sections regarding credit card abuse and fraud below ...
Amendment (6) to the Criminal Law of the People's Republic of China was adopted at the 22nd Session of the Standing Committee of the 10th National People's Congress of the People's Republic of China on 19 June 2006 and promulgated by President Hu Jintao on 29 June 2006. The Amendment, which entered into effect on the date it was promulgated, introduces penalties for a range of economic crimes ...
The Ministry of Finance promulgated the Measures for the Examination and Approval of the Advanced Recovery of Their Investment by Foreign Partners in Chinese-foreign Cooperative Joint Venture Enterprises on 9 June 2005. The Measures, which entered into effect on 1 September 2005, specify the conditions that foreign investors must satisfy to obtain advanced recovery of their investment in a Chinese-foreign cooperative joint venture (“CJV”) ...
The Ministry of Commerce (“MOFCOM”), the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation, the State Administration for Industry and Commerce, the China Securities Regulatory Commission (“CSRC”) and the State Administration of Foreign Exchange jointly issued the Regulations Regarding the Acquisition of Domestic Enterprises by Foreign Investors on 8 August 2006 ...
In late 2006, China’s National Social Security Fund Council for the first time granted overseas mandates to 10 global investment managers to manage in total USD 1 billion of the National Social Security Fund (“NSSF”). It is reported that the NSSF, China’s national pension fund of last resort, has total assets worth of around USD30 billion.The 10 managers are AllianceBernstein, Allianz, AXA Rosenberg, BlackRock, JanusINTECH, Invesco, PIMCO, State Street Global Advisors, T ...
The China Insurance Regulatory Commission (CIRC) recently issued draft rules namely, Regulatory Measures on Offshore Investment of Insurance Assets, governing China's insurance companies' investment in their assets offshore and the appointment of foreign investment managers ...
On 11 July 2006, six Chinese ministries (Ministry of Construction, Ministry of Commerce, National Development and Reform Commission, The People’s Bank of China, State Administration for Industry and Commerce and State Administration of Foreign Exchange) jointly issued a circular “Opinions on Regulating the Entry into and the Administration of Foreign Investment in the Real Estate Market” Jianzhufang [2006] Circular No ...
On June 11, 2020, the General Administration of Customs (“GAC”) released the Measures for the Administration of Imported and Exported Food Safety [draft] (General Administration of Customs of People's Republic of China, 2020) (“Draft Law”) to solicit public comments until July 11, 2020 ...
On August 12, 2020, the State Council of the People’s Republic of China (“State Council”) released theCircular on Further Stabilizing Foreign Trade and Foreign Investment(the “Circular”), in which the Chinese government announced 15 policies aiming to protect foreign trade entities and to keep supply chains stable against the economic fallout of the unabated COVID-19 pandemic. A few key points of the Circular include: 1 ...
On October 8, 2023, theScientific and Technological Ethics Review Regulation (Trial)("Scientific and Technological Ethics Regulation") was jointly published by the China's Ministry of Science and Technology ("MOST"), the Ministry of Education, the Ministry of Industry and Information Technology, and other seven (7) departments/institutions, which was followed by a press conference held next day by the MOST to respond to media inquiries ("Press Conference") ...
On 24 August 2006, the China Securities Regulatory Commission ("CSRC"), People's Bank of China ("PBOC") and the State Administration of Foreign Exchange ("SAFE") jointly issued new regulations, the "Measures for the Administration of Investment in Domestic Securities by Qualified Foreign Institutional Investors" (the "New QFII Rules") that govern the regime allowing qualifying foreign institutions approved by the CSRC as Qualified Foreign Institutional Investors ("QFIIs") to invest in China A sh
