Capital Markets

CSRC proposes introducing DVP for institutional stock investors; FDI hits another record high in 2021 despite pandemic; and MIIT calls on light industry enterprises to upgrade products

Kevin Yuan, Lucca Li and Jocelyn Chen of FenXun Partners discuss China's efforts to support continuous financial innovation in 2021 based on steady development including taking steps to protect the security of personal data in the midst of rapid developments in finance and technology, implementing detailed rules and new initiatives related to fintech innovation, and taking clear steps to open up the financial market to the outside world.

Chinese IPOs in the United States have slowed for several years now, but a raft of regulatory developments in the past year mainly driven by cybersecurity and national security concerns have likely rung the closing bell

Charles Wu and Zaiguang Lu of Han Kun Law Offices review the significant legislative developments of 2021 affecting China's private equity and venture capital industry, and offer insights on the key trends, challenges and opportunities in the sector

Groundbreaking algorithm recommendation regulation finalized; CSRC pilots market makers for STAR Market; and copyright administration prohibits digital music exclusive copyright arrangements

CBIRC allows involvement of insurance capital in securities lending

Manufacturing and service industries further opens up to foreign investment but loophole allowing foreign investment in restricted sectors is plugged; food producers warn of major disruptions as all foodstuffs now subject to import regulation; and trial macroprudential policy guidelines provide key definitions and high-level guidance for managing systemic financial risks

Guo Yongmao of Haiwen & Partners discusses the various types of taxes under the PRC tax regime that new companies must consider when setting up a business in mainland China and highlights how tax impacts investors of a PRC company if they are foreign entities when considering dividends distribution, interest payment and transfer pricing

CSRC permits Chinese companies to list overseas with VIE structure after filing; SEC updates disclosure guidance for China-based companies to highlight VIE risks; and Xinjiang forced labor ban signed into law