Legislation roundup: Guidance for financial markets, economic policy and forex inflows
July 12, 2013 | BY
clpstaff &clp articles &The General Office of the State Council has released Opinions to adjust and upgrade the country's economic structure. The NDRC has identified key tasks for economic reform and SAFE has strengthened control of forex inflows in a new Circular
Financial markets
General Office of the State Council, Guiding Opinions on Financial Support for Adjusting, Transitioning and Upgrading the Economic Structure
The State Council's new opinions guide the orientation of China's financial markets:
(1) Continuing to implement a stable and sound monetary policy and reasonably maintaining the total money and credit supply.
(2) Guiding and promoting the transition and adjustment of key sectors and industries.
(3) Integrating financial resources to support the development of micro and small enterprises.
(4) Further developing consumer financing to promote improvements in consumption.
(5) Accelerating the development of a multi-level capital market.
(6) Further leveraging the security function of insurance.
(7) Escalating private capital into the financial industry.
(8) Stringently guarding against financial risks.
See the digest for more details.
Further reading
Circular on Issues Relevant to Cross-border Direct Investment in Renminbi, Nov 2011
PRC Tentative Regulations on Resource Tax (Revised), Dec 2011/Jan 2012
Economic policy
National Development and Reform Commission, Opinions on the Key Tasks Involved in Intensifying the Reform of the Economic System in 2013
The NDRC has put forward some key tasks involved in intensifying the reform of the economic system in 2013, including:
(1) Steadily promoting the reform of making interest rates and exchange rates more market-oriented.
(2) Steadily promoting the convertibility of the renminbi on the capital account.
(3) Establishing a system for offshore investment by qualified domestic individual investors.
(4) Studying how to promote offering renminbi denominated bonds in China by qualified foreign organisations.
See the digest for more details.
Further reading
Going outbound: What private companies can learn from SOEs, May/Jun 2013
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Foreign exchange
State Administration of Foreign Exchange, Circular on Issues Relevant to Strengthening the Control of Foreign Exchange Inflows
The reference loan to deposit ratio of Chinese-invested banks is 75%, for foreign-funded banks 100% and the balance-of-payments adjustment coefficient is set to be 0.25. An enterprise whose cash flow and flow of goods are severely mismatched or whose inflow is relatively large will be given a risk warning letter.
See the digest for more details.
Further reading
Announcement on the Reform of the Foreign Exchange Control System for Trade in Goods, Sept/Oct 2012
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