Legal

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.

Whilst China's new Company Law is not all it could have been, it goes a long way in introducing protection for minority shareholders, improving corporate governance and ensuring more realistic capitalization requirements for the establishment of companies.

This Circular provides that domestic debts of at least US$200K with repayment duration of at least 180 days will be administered through foreign debt registraion. Some pre-Circular interpretation conflicts and practical enforcement problems are also solved.

This Law provides that a company is a separate legal entity from its shareholders. Two types of companies are allowed: limited liability company (LLC), and companies limited by shares.

National LegislationADVERTISING AND MARKETINGDecision on Adjusting Corresponding Articles of Relevant Advertising Regulatory Rules in Accordance with the…

Issued: October 20 2005Main contents: Where an application by a foreign investor intending to make use of the profits from a foreign-invested enterprise…

By Qin Yu and Li [email protected]; [email protected] the growth of China's economy in recent years, construction projects…

Issued: October 13 2005Effective: October 18 2005Main contents: The quantity benchmarks of copies specified in Item(2) of the first paragraph and Item(2)…

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.