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.
Issued: November 12 2005Main contents: The Official Reply gives consent to the examination and approval by offices of the State Administration of Taxation…
Issued: November 24 2005Effective: as of date of issueInterpreting authority: State Administration of Foreign Exchange (SAFE)Applicability: The term "market…
Promulgated: October 21 2005Effective: December 1 2005Main contents: The Circular deals with issues such as:1. delayed payments of at least 180 days and…
Promulgated: November 7 2005Effective: January 1 2006, with a transition period of three months from the effective dateInterpreting authority: Ministry…
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.
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.