Revised on August 31 2014. Latest version can be found at: http://www.chinalawandpractice.com/Article/3390486/PRC-Securities-Law-Revised-in-2014.htmlPromulgated:…
While it maintains the existing distinction between partial and full foreign-invested enterprise status, the Measures have new stipulations on investor qualifications, share transfer regulations, general offer requirements, corporate procedures and methods of acquisition payment.
The new rules on foreign strategic investment aim to restore investor confidence in merger and acquisition activity in China. What are the new reforms and how will they assist new investors in Chinese listed companies?
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.