Legal

While prohibited to make bad debt provisions, foreign telecom operators may now treat customers' bill overdue for a year or more as bad debt.

Protection of private property and human rights are now officially enshrined in the PRC Constitution.

Measures for the protection of workers and formal requirements for employment contracts.

The differing characterization of retained earnings as equity assignment income or dividend income, in situations as company stock transfer, liquidation and assignment of subsidiary.

Transfer of PRC treasury bonds held by the same client among different custodian institutions.

Provides for foreign investment and participation in the PRC advertising market.

Clarification for the investment banking qualificaiton for the registration of sponsor representative.

Producers now has to bear the burdens for the tax portion that is not refunded.

The creation of healthy capital markets in China has come under renewed attention with recent moves by the government to promote sound corporate practices by both issuing companies and sponsors.