Legislation roundup: Advance offerings, outbound investment and lease financing contracts
March 27, 2013 | BY
clpstaff &clp articles &Several government bodies have issued a Circular over pilot projects for the advance offering of treasury bonds. MOFCOM has issued Provisions to record unfair competitive acts by Chinese companies and the SPC has released an Interpretation over lease financing contracts
Capital markets
Ministry of Finance, People's Bank of China and China Securities Regulatory Commission, Circular on the Pilot Project of the Launch of Advance Offering of Treasury Bonds
For the first time in China, treasury bonds are allowed to be traded on the national interbank bond market and stock exchange bond markets before offering. The net sale balance of pre-issued treasury bonds of Type-A members of each underwriting syndicate of book-entry treasury bonds may not exceed 6% of the offering volume, while the limit is 1.5% of the offering volume for Type-B members.
See the digest for more details.
Further reading
People's Bank of China and Ministry of Finance, Announcement [2011] No.6
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Outbound investment
Ministry of Commerce, Provisions on Regulating Competitive Acts in the Area of Foreign Investment and Cooperation
MOFCOM is going to set up a system documenting the bad reputation of Chinese companies engaging in outbound investment. Unfair competitive acts of Chinese companies will be recorded and such companies will not be eligible for state support policies for three years. Unfair competitive acts include commercial bribery, improper pricing, collusion with others in bidding and defamation of a competitor's business reputation.
Further reading
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Lease financing
Supreme People's Court, Interpretation on Issues Relevant to the Application of the Law in the Trial of Disputes over Lease Financing Contracts (Draft for Comments)
The Draft makes no definite decision on whether to accept real property as a leased object. One suggestion is to allow commercial property and factories to be leased for lease financing, but not land use rights or residential premises. The Draft is also open to the discussion on whether to impose restrictions on the qualifications of a lessor.
See the digest for more details.
Further reading
Measures for the Administration of Lease Financing Companies
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