The Tentative Measures provides for investments in government bonds, financial bonds and enterprise/corporate bonds. It also specifically stipulates on new bond products as commercial bank financial bonds, international development organization renminbi bonds and short term financing bonds. In its risk control efforts, the Tentative Measures requires the establishment of a sound bond investment risk control system with a precise, scientific and effective business operation flow, a credit risk evaluation system for bond issuing parties and bonds, and an independent third-party custody system.
China cross-border venture capital activity and overseas listings should soon be reinvigorated by the issuance of a new circular by China's State Administration of Foreign Exchange (SAFE).
New regulations dictating the investment of funds under the management of China's insurance companies will benefit consumers and the capital market alike, offering more diverse investment opportunities in tandem with more stringent risk management guidelines.
In addition to elaborating the Tentative Measures for the Administration of Overseas Utilization of Foreign Exchange Insurance Funds, the Implementation Rules further establish the basic management structure, duties and responsibilities, their basic operations and management procedures, and their selection following market-oriented principles for the insurance company (the entrusting party), the investment management institution (the entrusted party) and the commercial bank (the custodian). The Implementing Rules also add new overseas products such as structured deposits, mortgaged-backed securities and money market funds. It also introduces independent third parties in supervising funds flow, internal control mechanisms, accounting, credit rating and assets evaluation.
Curbing non-performing debts on the books of China's financial institutions remains one of the economy's most pressing concerns. To this end, the Ministry of Finance has issued measures requiring financial institutions to set aside provisions for debts based on their underlying risks.
Issued: July 18 2005Effective: as of date of issueInterpreting authority: Shenzhen Stock ExchangeMain contents: Please see the digest for the Shanghai…
After whetting investors' appetites in opening its media industry to foreigners in late 2004, is China now turning back on its earlier liberalization initiatives?
Issued: July 14 2005Effective: as of date of issueInterpreting authority: Shenzhen Stock ExchangeMain contents: Reference may be made to the digest of…
National LegislationCONSTITUTION AND LEGAL SYSTEMMeasures for the Administration of the Registration of Judicial Authentication Organizations 司法鉴定机构登记管理办法L1400/05.09.29(1)Measures…
Promulgated: August 23 2005Effective: December 1 2005Main contents: The Regulations comprise:Part One: General ProvisionsPart Two: Establishment and Change…