Legislation roundup: IT infrastructure, share trading in Shenzhen and fund management rules
August 15, 2013 | BY
clpstaff &clp articles &This week the State Council has tried to boost spending on IT, the Shenzhen Stock Exchange has lowered minimum trading shares and CSRC has relaxed rules for fund management companies
Information technology
State Council, Several Opinions on the Promotion of Consumer Spending on Information Technology to Expand Domestic Demand
The State Council aims to increase consumer spending on information technology at a rate of 20% each year and reach a spending size of more than Rmb3.2 trillion in 2015. Specific policies include the construction of smart cities by building smart systems for power grids, transport, water management, land supply and logistics, acceleration of the upgrading of information technology infrastructure such as the issuance of 4G licences in 2013, and enhancement of the supply of information technology products by R&D in smart phones, smart TVs and family smart terminals.
See the digest for more details.
Further reading
Expanding investment channels for infrastructure development projects, Nov 2009
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Capital markets
Shenzhen Stock Exchange, Trading Rules (4th Revision)
The Revision lowers the minimum trading shares and amounts for block transactions of A shares, B shares and funds to 60% of the existing thresholds. Two new pricing methods based on the closing price or volume-weighted average price are introduced for block transactions. Also, bond ETFs bought are allowed to be sold on the same day.
See the digest for more details.
Further reading
PRC Securities Investment Fund Law (Revised), Mar/Apr 2013
PRC Securities Law (Amended), Feb 2006
China Securities Regulatory Commission, Tentative Provisions for the Administration of the Use of Fund Management Companies' Own Funds
Fund management companies are allowed to use their own funds to invest in financial assets and equity investment related to their asset management business. However, the investment percentage in high liquidity assets such as cash, bank deposits, treasury bonds and funds may not be less than 50%.
Further reading
Measures for the Administration of Securities Investment Fund Management Companies (Amended), Nov/Dec 2012
PRC Securities Investment Fund Law (Revised), Mar/Apr 2013
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