Legislation roundup: Anti-monopoly reviews and securities investment funds

(2) the concentration of business operators accounts for less than 25% of the market share of the upstream and downstream markets;

(3) the concentration of business operators not from the upstream or downstream market accounts for less than 25% of the market share of each market;

(4) the overseas joint venture set up by the concentration of business operators does not engage in business activities in China;

(5) the enterprise acquired by the concentration of business operators does not engage in business activities in China; or

(6) after the concentration, an investor solely controls a joint venture that was jointly controlled by two or more investors, unless the investor is a competitor of the joint venture in the same relevant market.

See the digest for more details.


Further reading
PRC Anti-monopoly Law, Oct 2007

Provisions on the Reporting Threshold for Concentrations of Business Operators, Sep 2008

Ministry of Commerce, Provisions for the Imposition of Restrictive Conditions on Concentrations of Business Operators (Draft for Comments)

商务部经营者集中附加限制性条件的规定 (征求意见稿)

The Draft suggests that MOFCOM may, when approving a concentration of business operators, impose restrictive conditions including:

(1) structural conditions such as divestiture of assets, intellectual property or relevant rights and interests;

(2) behavioural conditions such as opening of networks or platforms, licensing of key technologies including patents or termination of exclusive agreements; or

(3) a combination of structural conditions and behavioural conditions.

See the digest for more details.

Further reading

PRC Anti-monopoly Law, Oct 2007

Tentative Provisions for the Implementation of Asset or Business Divestitures of Concentrations of Business Operators, Sep 2010

Investment instruments

China Securities Regulatory Commission and China Banking Regulatory Commission, Measures for the Administration of the Custodian Business for Securities Investment Funds

中国证券监督管理委员会、中国银行业监督管理委员会证券投资基金托管业务管理办法

Foreign-funded banks are now allowed to be custodians of securities investment funds. A commercial bank applying to be a custodian of securities funds should have net assets of at least Rmb2 billion at the end of the financial year in the past three years. At least half of the personnel of the bank's fund custody department should have obtained fund business qualifications.

Further reading

PRC Securities Investment Fund Law (Revised), Mar/Apr 2013