Banking & Finance

General Office of State Council, Several Current Opinions on Promoting Economic Development with Financial Policies [Legislation Digest]
国务院办公厅关于当前金融促进经济发展的若干意见
State Council issues 30 measures to boost the economy.

Regulator approves M&A lending
“Groundbreaking” rules give domestic commercial banks important role

Landmark gas pipeline takes shape

Regional headquarters and inter-company loans

New CSRC Guiding Opinion on QFII inspectors

Financial facilities

MOFCOM loosens its grip on foreign investment
China’s Ministry of Commerce has issued two circulars which delegate power and loosen its grip on approving foreign investment into the PRC. Investors in private equity and retail are the biggest benefactors.

China Banking Regulatory Commission, Operational Guidelines for the Private Equity Investment Trust Business of Trust Companies [Legislation Digest]
中国银行业监督管理委员会信托公司私人股权投资信托业务操作指引
Clearer procedures for private equity investment through trust companies.

RULES GOVERNING EXCHANGEABLE BONDS BROADEN INVESTMENT CHANNELS

DECHERT STRENGTHENS ASIA PRACTICE

Operational Guidelines for the Private Equity Investment Trust Business of Trust Companies [Full Text Translation]
信托公司私人股权投资信托业务操作指引
The Guidelines set forth the requirements for engaging in the private equity investment trust business.

Private Banking in China – When the Honeymoon Is Over
Private banking in China only received its baptism in September 2005 with the promulgation of the Interim Administrative Rules on Private Wealth Management Business of Commercial Bank. Some commentators have argued that the monetary threshold for the private wealth management regime is so low that its regulatory ambit covers territory more properly classified as retail banking than true private banking. By Jane Jiang, counsel, Corporate Practice, Allen & Overy Beijing and Fai-hung Cheung, counsel, Banking Practice, Allen & Overy Shanghai

Legal Regime of Equity Contribution in China and its Implications for Direct Investment

People’s Bank of China, Extending the Downward Movement of Interest Rates for Loans for Residential Premises of a Commercial Nature for Individuals in Support of First-time Purchase of Ordinary Residential Premises by Residents [Legislation Digest]
中国人民银行扩大商业性个人住房贷款利率下浮幅度 支持居民首次购买普通住房
China revitalises its property market to increase domestic demand in view of the financial crisis.

Several Issues regarding Guarantee Companies in China

CSRC to Further Regulate the Valuation Measures of Securities Investment Funds

China Securities Regulatory Commission, Compilation Rules for Information Disclosure by Companies that Offer Securities to the Public (No.26): Special Provisions for the Information Disclosure of Commercial Banks [Legislation Digest]
中国证券监督管理委员会公开发行证券的公司信息披露编报规则第26号 - 商业银行信息披露特别规定
Commercial banks required to disclose information on sub-prime loans.

BOC BECOMES FIRST CHINESE BANK TO INVEST IN EUROZONE LENDER

PRC Regulations for the Control of Foreign Exchange (2nd Revision) [Full Text Translation]
中华人民共和国外汇管理条例 (第二次修訂)
The Regulations cover the control of foreign exchange on the current account and capital account.

China Law & Practice Awards – the winners
After 12 months of innovative and pioneering work and four months of research, interviewing and profiling, the 2008 China Law & Practice awards were presented in Beijing on September 18. The winning deals and firms were recognised for their impact on China’s legal community.

State Council, PRC Regulations for the Control of Foreign Exchange (2nd Revision) [Legislation Digest]
国务院中华人民共和国外汇管理条例 (第二次修订)
Forex regulations revised to curb inflow of hot money.

People’s Bank of China and China Banking Regulatory Commission, Circular on Promoting Land Conservation and Improving the Efficiency of Land Use through Financial Means [Legislation Digest]
中国人民银行、中国银行业监督管理委员会关于金融促进节约集约用地的通知
Loans for real property tightened.

Issues Relating to Small and Medium Sized Enterprises’ Issuance of Collective Enterprise Bonds

How to Borrow from Chinese Entities

CSRC measures for financial consultants are unclear
China Securities Regulatory Commission has issued measures aimed at regulating the financial consultants who provide advice to listed companies in China. Although it is seen as a step in the right direction, by bringing China more into line with the world’s mature capital market environments, for many the measures do not provide a level playing field for M&A activity in China.

Govt drafts rules to regulate banks and insurers

National Development and Reform Commission, Circular on Further Strengthening and Regulating the Administration of Foreign-invested Projects [Legislation Digest]
国家发展改革委关于进一步加强和规范外商投资项目管理的通知
Cautious approval of FIE projects to stop irregular inflow of capital.

PE firm invests in aluminum industry

Lovells appoints banking and finance partner to China

China Law & Practice Awards 2008 – The Finalists
China’s legal market continues to attract high-end, complicated and multi jurisdictional work and in Beijing this month, the China Law & Practice awards will reflect the complexities and challenges. Chris Bisogni and Joanna Law provide a summary of the deals and firms that made the 2008 shortlist.

Issues Concerning Consideration Payment in Equity Merger and Acquisition Transactions in China

Impact of China’s New Laws on the Financing of Real Estate Projects with Foreign Investment

Anti-Monopoly Law: The Lawyers are Ready, but the Law Isn’t
China’s long-awaited Anti-Monopoly Law will become effective in one month. But lawyers are demanding that the government clean up some serious flaws and ambiguities in the draft mergers and acquisitions regulations.

Ministry of Finance and China Securities Regulatory Commission, Circular on Administrative Issues Relevant to Asset Appraisal Firms that Engage in Securities and Futures-related Business [Legislation Digest]
财政部、中国证券监督管理委员会关于从事证券期货相关业务的资产评估机构有关管理问题的通知
Standards of asset appraisal firms controlled to protect the securities market.

GOVERNMENT ISSUES MEASURES TO CONTROL STOCK PRICES

SINO-FOREIGN SECURITIES JV WILL LEAD TO IMPROVED LEGAL SERVICES IN CHINA

DLA PIPER AND DEACONS ADVISE ON BANK DEAL

INVESTORS EYE ON CHINA’S ENVIRONMENTAL SECTOR

SHANGHAI FACILITY REFINANCED

Circular on Administrative Issues Relevant to Asset Appraisal Firms that Engage in Securities and Futures-related Business [Full Text Translation]
关于从事证券期货相关业务的资产评估机构有关管理问题的通知
The Circular sets forth the criteria for asset appraisal firms applying for securities and futures-related business valuation qualifications.

China’s Leading Lawyers
How do the Leading Lawyer nominations reflect the evolution of the legal system in China? China Law & Practice takes a closer look at the results, and speaks to the nominees about their areas of expertise. Hear from the experts what the future holds for China law.

China’s New Judicial Interpretation on the Company Law – A Step Toward Systemized Corporate Exit Mechanisms
On May 12, 2008 the Supreme People’s Court promulgated the Interpretation of Some Issues regarding the Application of the PRC Company Law, which became effective on May 19, 2008. The new interpretation provides guidelines on the application of Chapter 10 of the Company Law on dissolution and liquidation of companies incorporated in China, including foreign invested enterprises and domestically owned companies, both limited liability companies and joint stock companies. See the full text translation

General Office of the China Banking Regulatory Commission, Circular on Issues Relevant to the Engagement in Foreign Exchange Margin Trading by Banking Financial Institutions [Legislation Digest]
中国银行业监督管理委员会办公厅关于银行业金融机构开办外汇保证金交易有关问题的通知
The CBRC puts a halt to banks’ forex margin trading.

People's Bank of China, Measures for the Administration of Debt Financing Instruments of Non-financial Enterprises in the Interbank Bond Market [Legislation Digest]
中国人民银行银行间债券市场非金融企业债务融资工具管理办法
Issue of bonds by non-financial enterprises made easier.

Ministry of Finance, Measures for the Participation in the PRC Uniform Certified Public Accountant Examination of Residents of Hong Kong, Macao and Taiwan Regions and Foreign Nationals [Legislation Digest]
财政部港澳台地区居民及外国籍公民参加中华人民共和国注册会计师统一考试办法
Criteria for participation in the PRC Uniform Certified Public Accountant Examination further detailed.

NEW RULES FOR FUNDS IN HONG KONG

RULES ON INSIDER TRADING TIGHTENED

Circular on Issues Relevant to the Engagement in Domestic Gold Futures Trading by Commercial Banks [Full Text Translation]
关于商业银行从事境内黄金期货交易有关问题的通知
The Circular allows commercial banks to engage in gold futures trading and specifies the conditions such as having the qualifications to trade in derivatives.

REGULATIONS ARE OBSTACLES FOR M&A DEALS IN ASIA, REPORT SAYS

Administrative Rules on Material Asset Restructuring of Listed Companies: New Rules on the China Capital Market
On April 18 2008, the CSRC promulgated the Administrative Rules on Material Asset Restructuring of Listed Companies. This represents another major move to improve the basic system of the domestic stock market in China, and signifies that the M&A and restructuring of China’s listed companies has entered a new era of standardization and development.

General Office of the China Banking Regulatory Commission, Circular on Issues Relevant to the Engagement in Domestic Gold Futures Trading by Commercial Banks [Legislation Digest]
中国银监会办公厅关于商业银行从事境内黄金期货交易有关问题的通知
Commercial banks allowed to engage in gold futures trading.

Current Policies and Prospects on Cross-straits Economic Exchanges
Vice Chairperson of the Mainland Affairs Council Liu Te-shun (LTS) spoke with Chris Bisogni (CB) and shared his thoughts on the development of cross-straits economic ties and what the Taiwanese people can expect as a result of Ma Ying-jeou’s victory in the recent election.

Confidence in Ma but Urgent Attention to the Economy Needed: Lawyers
The election of Ma Ying-jeou as Taiwanese president is good news for Taiwan but lawyers agree economic reforms and direct flights to the PRC are two issues that need urgent attention. China Law & Practice invited six lawyers from Taiwan’s leading law firms to discuss the implications of Ma Ying-jeou’s election victory.

General Office of the China Banking Regulatory Commission, Circular on Issues Relevant to Further Regulating the Personal Financial Management Business of Commercial Banks [Legislation Digest]
中国银行业监督管理委员会办公厅关于进一步规范商业银行个人理财业务有关问题的通知
CBRC puts a halt to commercial banks’ selling of products linked to overseas funds.

GEM TO PROVIDE NEW CHANNEL TO RAISE CAPITAL

People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, Several Opinions on Accelerating the Development of the Service Industry with Support from the Financial Sector [Legislation Digest]
中国人民银行、中国银行业监督管理委员会、中国证券监督管理委员会、中国保险监督管理委员会关于金融支持服务业加快发展的若干意见
Enterprise groups in the service industry given priority to establish finance companies.

Minsheng and RBC formed US$28 million joint venture

IFIL Group’s US$90 million deal closed

Beijing law firm expands its corporate practice

White & Case expands finance practice in Asia

China’s measures to further encourage QDII investment

Banking Opportunities in Kazakhstan 2008

State Administration of Foreign Exchange and State Administration of Taxation, Circular on Issues Relevant to the Trial Implementation of Tax Filing for Outbound Payments of Trade in Services [Legislation Digest]
国家外汇管理局、国家税务总局关于试行服务贸易对外支付税务备案有关问题的通知
Advance tax filing for the service industry implemented in six places for trial.

State Administration of Taxation, Circular on Issues Relevant to the Administration of Tax Collection Concerning Outbound Payments of Trade in Services [Legislation Digest]
国家税务总局关于服务贸易对外支付税收征管有关问题的通知
Procedures for advance tax filing for the service industry clarified.

State Administration of Taxation, Supplementary Circular on Issues Relevant to the Administration of Tax Collection Concerning Outbound Payments of Trade in Services [Legislation Digest]
国家税务总局关于服务贸易对外支付税收征管有关问题的补充通知
International maritime transport not included in trial advance tax filing.

China Banking Regulatory Commission, Guidelines for the Consolidated Supervision of Banks (Trial Implementation) [Legislation Digest]
中国银行业监督管理委员会银行并表监管指引 (试行)
CBRC requires tighter consolidated supervision of banking groups to prevent risks.

Guidelines for the Consolidated Supervision of Banks (Trial Implementation) [Full Text Translation]
银行并表监管指引（试行）
The Guidelines set forth the conditions under which an investee organization of a commercial bank shall be included within the scope of consolidated supervision.

China Banking Regulatory Commission, Measures for the Administration of Auto Finance Companies [Legislation Digest]
中国银行业监督管理委员会汽车金融公司管理办法
The business scope of auto finance companies expanded.

Measures for the Administration of Auto Finance Companies [Full Text Translation]
汽车金融公司管理办法
The revised Measures allow auto finance companies to engage in six more types of businesses.

People’s Bank of China, Circular on Matters Relevant to the Engagement in Renminbi Interest Rate Swap Business [Legislation Digest]
中国人民银行关于开展人民币利率互换业务有关事宜的通知
Interest rate swaps allowed for all market participants in the national interbank bond market.

Credit Tightening Shifts Investors’ Decisions in Real Estate

No Credit Crunch in Asia

YIHE Real Estate issues US$130 million in bonds

Chinese snack maker listed in HK

Oil IPO raises US$410 million

Chinese developer listed in the US

General Office of the Ministry of Communications, Circular on Reforming the Bid Invitation Administration System for Construction Works of Highway Construction Projects that Use Loans from International Financial Organizations or Foreign Governments [Legislation Digest]
交通部办公厅关于改革使用国际金融组织或者外国政府贷款公路建设项目施工招标管理制度的通知
Approval relaxed for highway construction projects using loans from international financial organizations or foreign governments.

New China Banking Regulatory Guidelines: Supervision Raised to Minimize Risks of Domestic Banks
In response to the rapid development of the banking industry in the PRC, new rules were promulgated on February 4 2008 to address a number of related issues. Several of China’s top lawyers shared their views on the new Guidelines for the Consolidated Supervision of Banks (Trial Implementation).

People’s Bank of China and China Banking Regulatory Commission, Measures for the Administration of Loans for Development of Economically Affordable Residential Premises [Legislation Digest]
中国人民银行、中国银行业监督管理委员会经济适用住房开发贷款管理办法
More banks are allowed to provide loans for the development of economically affordable residential premises.

CONFIDENCE OF ASIAN CEOS REMAINS STRONG

Deals & Dealmakers

OUTBOUND INVESTMENT REACHES RECORD NUMBERS

China Securities Regulatory Commission, Guidelines for Contents and Formats for Information Disclosures by Companies that Offer Securities to the Public (No.2): Contents and Format of Annual Reports (2007 Revision) [Legislation Digest]
中国证券监督管理委员会公开发行证券的公司信息披露内容与格式准则第2号—年度报告的内容与格式 (2007年修订)
Cross-shareholdings required to be disclosed in annual reports.