People's Bank of China, Questions Concerning the Examination of the Qualifications of Shareholders in the Course of Re-registration of Trust and Investment Companies Circular

Issued: December 21 2001

Main contents: The Circular amends the second paragraph of Article 11(1) of the Equity Investments in Financial Institutions Tentative Provisions (the Provisions) requiring the equity investment to trust and investment companies be lawful and genuine capital injections instead of requiring profits in the last three years as stipulated in the old version (Item One). The Circular also amends Article 12 of the Provisions to allow overseas enterprises, and wholly foreign-owned enterprises and Sino-foreign equity joint ventures inside China (except for commercial banks), to make equity investments in trust and investment companies (Item Two). Article 12 of the Provisions formerly prohibited wholly foreign-owned or Sino-foreign equity joint venture financial institutions or enterprises from investing in wholly Chinese-owned financial institutions.
Related legislation: Equity Investments in Financial Institutions Tentative Provisions, 1994