Legislation roundup: Forex control on QDIIs, insurance guidance and futures trading by securities companies
August 30, 2013 | BY
clpstaff &clp articles &SAFE has released Provisions removing restriction on QDIIs and the CIRC has issued Guiding Opinions on upgrading the economic structure. The CSRC has released guidelines prohibiting stock futures trading by unqualified securities companies
Foreign exchange
State Administration of Foreign Exchange, Provisions on Foreign Exchange Control in Connection with Overseas Securities Investments by Qualified Domestic Institutional Investors
The Provisions remove the restriction on the types of currencies that a QDII may outwardly or inwardly remit. The sources of funds for overseas securities investments of QDIIs are also expanded. SAFE also removes the requirement to review foreign exchange conversion and purchase and reduces the materials required for an investment limit application. The net outward remittance amount in foreign exchange or renminbi of a QDII cannot exceed its approved investment limit.
See the digest for more details.
Further reading
PRC Regulations for the Control of Foreign Exchange (2nd Revision)
Insurance
China Insurance Regulatory Commission, Guiding Opinions on Support for Adjusting, Transitioning and Upgrading the Economic Structure from the Insurance Sector
The Opinions promote the development of liability insurance for high risk industries, public liability, travel agencies, product quality and food safety. Insurance companies may provide long-term funding support to major infrastructure, urban infrastructure and welfare housing projects through equity, funds, bonds and asset-backed plans. Private capital is encouraged to invest in insurance companies by means of establishment by promotion, equity acquisition and subscription of new shares.
See the digest for more details.
Further reading
Capital markets
China Securities Regulatory Commission, Guidelines for Participation in the Trading of Stock Index Futures and Treasury Bond Futures by Securities Companies
The previous draft allowed securities companies without the qualifications to trade securities on their own account to trade stock index futures and treasury bond futures for the purpose of hedging. The formally promulgated Guidelines no longer allow them to trade stock index futures at all.
See the digest for more details.
Further reading
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