Capital Markets

A subsidiary of a securities company that has been operating continuously for at least two years instead of five years may apply to expand its scope of business.

Fund management companies allowed to engage in specific client assetmanagement business through their subsidiaries.

The foreign shareholding in the domestic shareholder should be included whencalculating the total foreign shareholding of a joint venture fund managementcompany.

Wealth management plans of fund management companies allowed to invest in non-listed equity.

The Interpretation defines terms such as "a well-informed person with inside information regarding a securities or futures transaction" and "period of sensitivity of inside information".

Enterprise income tax may not be levied by assessment against enterprises that solely engage in equity (stock) investment business.

New Provisions have created competition between brokers by allowing foreign institutional investors to use more than one securities dealer

Gary J Gao and Y Q Richard Song of Duan & Duan Law Firm provide a guide to developments in China's capital markets, including the drive to increase transparency and recover from the Muddy Waters scandal

The Measures have been revised to pave the way for seed funding requiring the size of the fund to be at least Rmb50 million and the number of fundholders to be at least 200.