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In the News: CSRC to Exempt Foreign Investors Investment Rule; Foshan Govt Vastly Increases Overseas IP Subsidies; and Regulators Approve JV for BNP Paribas and ABC
October 27, 2022 | BY
Josiah WangCSRC plans to exempt foreign investors from short-term profit rules; Foshan Government vastly increases financial support for overseas IP protection; BNP Paribas gains regulatory approval from CBIRC for wealth management joint venture with Agricultural Bank of China.
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CSRC to Exempt Foreign Investors Investment Rule
According to recent news reports, the China Securities and Regulatory Commission (CSRC) is considering granting foreign investors that invest in A-shares either via qualified foreign institutional investors (QFIIs) or the Stock Connect scheme an exemption for the short swing profit rule (SSPR). This puts them on an equal footing with domestic asset managers, who have already been granted the exemption. It would also help further capital investment from abroad in the China A-share market, providing easier access to Chinese capital markets.
Under current rules, if shareholders holding 5% or more shares or other equity-type securities in a listed company buy or sell the company stock within