Legislation roundup: Insider trading, FDI regulations and Forex control processes
November 23, 2012 | BY
clpstaff &clp articles &The CSRC has strengthened its regulation of insider trading, while SAFE has relaxed rules on opening foreign exchange accounts for FDI and streamlined the foreign exchange control process for foreign-invested partnerships
Capital markets
China Securities Regulatory Commission, Tentative Provisions on Strengthening the Regulation of Unusual Share Transactions in Connection with Material Asset Reorganisation of Listed Companies
If, in the process of the CSRC's examination of an M&A transaction, the listed company, the transaction counterparty that accounts for 20% or more of the transaction amount, or their controlling shareholder, de facto controller or controlled organisation, is found to have been involved in insider trading, the CSRC will terminate the examination process.
See full translation for more details.
Further reading:
Clamping down on insider trading, Nov/Dec 2012
Foreign exchange
State Administration of Foreign Exchange, Circular on Further Improving and Revising the Foreign Exchange Control Policy on Direct Investment
The Circular cancels the approval requirements relating to foreign direct investment for opening of foreign exchange accounts, deposits into relevant accounts, purchase of foreign exchange for payment to foreign parties and foreign exchange transfers within China. Also, approval for reinvestment of income lawfully derived from China by foreign investors is no longer required.
See the full translation for more details.
Further reading:
Circular on Issues Relevant to Improving Foreign Exchange Control on Foreign Direct Investment, May 2003
State Administration of Foreign Exchange, Circular on Issues Relevant to Foreign Exchange Control in Connection with Foreign-invested Partnerships
The foreign exchange control process for foreign-invested partnerships will be substantially streamlined. After completing the necessary foreign exchange registration and capital contribution confirmation procedures, a foreign-invested partnership may directly open foreign exchange accounts and purchase foreign exchange with the bank.
See full translation for more details.
Further reading:
Provisions for the Administration of the Registration of Foreign-invested Partnerships
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