The Circular allows domestic residents to set up offshore financing platform by means of special purpose companies and to participate in various equity financing activities through reverse acquisition, equity transfer, convertible bonds in international financial market. The Circular also stipulates the relevant registration and administration procedures for special purpose companies and remittance of profits, dividends, liquidation proceeds, equity transfer proceeds, and capital reduction proceeds.
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.
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.
Issued: July 18 2005Effective: as of date of issueInterpreting authority: Shenzhen Stock ExchangeMain contents: Please see the digest for the Shanghai…
Issued: September 5 2005Effective: January 1 2005Main contents: The Circular comprises:1. Standard for the Deduction of Advertisement Expenses Centrally…
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Promulgated: July 15 2005Effective: August 15 2005Applicability: The term 'domestic investment entities' covers state-owned investment entities and non-state-owned…
Issued: August 25 2005Main contents: According to the Circular, the following are now subject to the examination and approval of the local branches of…
Issued: July 18 2005Effective: as of date of issueInterpreting authority: Shanghai Stock ExchangeApplicability: The term 'warrants' refers to negotiable…
Issued: July 14 2005Effective: as of date of issueMain contents: The Rules specify the procedures for the subscription, purchase, redemption and transfer…