Legislation roundup: Equity investments and information disclosures announced
April 26, 2013 | BY
clpstaff &clp articles &The CIRC has issued a Circular regulating equity investment in insurance companies. The CRSC has released Guidelines and Compilation Rules for information disclosures by companies that offer securities
Private equity
China Insurance Regulatory Commission, Circular on Issues Relevant to the Regulation of the Investment and Acquisition of Equity Stakes in Insurance Companies by Limited Equity Investment Partnerships
The CIRC has issued a circular governing equity investment in insurance companies by private equity firms in the form of limited partnerships. The capital contribution or shareholding of each PE partnership may not exceed 5% of a single insurance company and the total capital contribution or shareholding of all the PE partnerships may not exceed 15%. PE partnerships may not become the largest or controlling shareholder or the de facto controller of an insurance company nor may they participate in the business management of the insurance company.
See the full translation.
Further reading
Circular on Promoting the Compliant Development of Equity Investment Enterprises, Mar 2012
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Information disclosure
China Securities Regulatory Commission, Guidelines for Contents and Formats for Information Disclosure by Companies That Offer Securities to the Public (No.3) – Contents and Format of Interim Reports (Revised in 2013)
See the digest for more details.
China Securities Regulatory Commission, Compilation Rules for Information Disclosure by Companies that Offer Securities to the Public (No.13): Special Provisions on Content and Format of Quarterly Reports (Revised in 2013)
中国证券监督管理委员会公开发行证券的公司信息披露编报规则第13号——季度报告内容与格式特别规定（2013年修订）
The CSRC has simplified the contents of interim reports and quarterly reports of listed companies. Information already disclosed in the ad hoc report or appendices of the financial statements should be given references to avoid duplicate disclosure in the section of the report of the board of directors or the important matters section.
In order to address the concerns of investors, new disclosure requirements concerning information on entrusted asset management to non-financial companies and derivative investment and information on implementation of the cash dividend distribution plan or its revision are included in the guidelines for interim reports.
See the digest for more details.
Further reading
PRC Company Law (Amended), Dec/Jan 2005
PRC Securities Law (Amended), Feb 2006
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