Legislation roundup: cross-strait agreement, fund management companies and real property

June 27, 2013 | BY

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China and Taiwan have signed an agreement on trade in services. The CSRC and CIRC have issued Measures over fund management companies of insurance institutions and Beijing has released Measures over the pre-sale of commercial residential premises

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Taiwan

Mainland China and Taiwan, Cross-strait Agreement on Trade in Services

According to the Agreement, Taiwanese investors are allowed to set up fully-licensed securities companies in Shanghai, Fujian and Shenzhen with an equity shareholding up to 51%. Taiwanese financial institutions may also invest in the mainland capital markets through the RQFII scheme. Taiwanese investors may also set up rural banks, joint market survey ventures and engage in trademark agency services.

Mainland commercial banks may, when handling wealth management business, invest in Taiwanese financial products such as listed shares, securities trust funds, government bonds and corporate bonds.

See the digest for more details.

Further reading

Protecting indirect Taiwanese investors


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Insurance

China Securities Regulatory Commission and China Insurance Regulatory Commission, Measures for the Pilot Projects for the Investment in and Establishment of Fund Management Companies by Insurance Institutions

Insurance companies are allowed to set up fund management companies by promotion or acquisition of equity. When investing in fund products issued by its fund management company, an insurance company needs to comply with CIRC provisions on the types of investment products and investment percentages.

Further reading

PRC Securities Investment Fund Law (Revised)


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Beijing real property

Beijing Municipality, Measures for Monitoring the Proceeds from Pre-sale of Commercial Residential Premises

Beijing property developers are now required to credit the deposits from pre-sale of commercial residential premises into designated bank accounts within five working days from the day of online execution of the contract. Withdrawal of these deposits by the property developers would require a written application with the bank.

See the digest for more details.

Further reading

Circular on Continuing to Duly Regulate and Control the Real Property Market

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