Legislation roundup: Asset management, trade forex reforms and interbank bond markets
August 16, 2012 | BY
clpstaff &clp articles &The CSRC has released Measures opening up the wealth management sector to futures companies, while SAFE has issued an Announcement removing verification procedures of foreign exchange received from exports.
Wealth management
China Securities Regulatory Commission, Measures on the Pilot Asset Management Business of Futures Companies
The first group of 17 futures companies will be able to tap into the wealth management sector under the pilot scheme of the CSRC starting from September 1. The initial entrusted assets of a single client may not be less than Rmb1 million and may be invested in securities investment funds, pooled asset management plans, futures, options and other financial derivatives.
See the digest for more details.
Further reading
Provisions on Issues Relevant to Changes in the Registered Capital or Equity of Futures Companies, Sept/Oct 2012
Measures for the Administration of Futures Companies, Oct 2007
Trade forex reform
State Administration of Foreign Exchange, General Administration of Customs and State Administration of Taxation, Announcement on the Reform of the Foreign Exchange Control System for Trade in Goods
Starting from August 1 2012, enterprises no longer need to carry out the procedures for verification and settlement of their foreign exchange received from exports. Instead, the State Administration of Foreign Exchange will regularly check export/import transactions and foreign exchange receipts/expenditures derived from trade of each enterprise and evaluate the two types of figures.
See the digest for more details.
Further reading:
Announcement on the Pilot Reform of the Foreign Exchange Control System for Trade in Goods, Nov 2011
Asset-backed negotiable instruments
National Association of Financial Market Institutional Investors, Guidelines on Asset-backed Negotiable Instruments of Non-financial Enterprises on the Interbank Bond Market
Non-financial enterprises may now issue negotiable instruments in the interbank bond market backed by infrastructure-generated cash flows like rental income, rights to highway toll fees and claims to build-transfer (BT) contracts. Such assets must be free and clear of all liens and encumbrances.
See the digest for more details.
Further reading:
Measures for the Administration of Debt Financing Instruments of Non-financial Enterprises in the Interbank Bond Market, Jul/Aug 2008
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