This Law regulates the public offering and trading of securities, takeover of listed companies, stock exchanges, supervision of securities companies, securities depository and clearing institutions, securities service institutions, securities associations, and the securities regulatory authority.
Issued: September 26 2005Effective: as of date of issueApplicability: The Circular on Issues Relevant to Equity Participation by Hong Kong and Macao Service…
Issued: October 19 2005Main contents: The Opinions put forward 26 points to improve the quality of listed companies. Article 6 suggests listed companies…
Promulgated: October 21 2005Effective: December 1 2005Main contents: The Circular deals with issues such as:1. delayed payments of at least 180 days and…
China's new Securities Law heralds better times ahead for fund raisers and investors alike. Still, a lot remains to be done to bring the regulatory function of the country's securities market in line with regional competitors.
Compared with previous rules regarding debt provisioning, the Measures introduces greater flexibility in making the minimum 1% of year-end balance of risk assets a guideline rather than a mandatory requirement. It changes the nature of general provisions allocated from one of pre-tax deduction to a post-tax distribution of profit. The Measures allows financial institutions to set aside two types of loan loss provisions: specific provisions and special provisions. Further requirements for other categories of the asset impairment provisions, for instance bad debt provisions and provisions for impaired long-term investments, are also in place.
The Circular provides for the minimum credit rating of short-term financing bills in which a money market fund invests, while the domestic credit rating shall prevail over international credit rating. The percentage of the investment by a money market fund in the short-term financing bills and short-term corporate bonds issued by one company may not in total exceed 10% of the net value of the fund's assets. If the credit rating of short-term financing bills held by a money market fund drops, the fund shall fully divest itself of such bills within 20 trading days.
Issued: July 18 2005Effective: as of date of issueInterpreting authority: Shenzhen Stock ExchangeMain contents: Please see the digest for the Shanghai…
Issued: July 18 2005Effective: as of date of issueInterpreting authority: Shanghai Stock ExchangeApplicability: The term 'warrants' refers to negotiable…