Legislation roundup: QFII investors, securities trading and online payment services
April 03, 2014 | BY
clpstaff &clp articles &This week the Shanghai Stock Exchange relaxed the rules for Qualified Foreign Institutional Investors, the Securities Association of China established a negative list and the PBOC set limits for online payments
Capital markets
Shanghai Stock Exchange, Implementing Rules for Securities Trading by Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors
The Rules broaden the investment scope of qualified foreign institutional investors and renminbi qualified foreign institutional investors, adding new products such as preference shares, policy financial bonds, asset-backed securities and advance offerings of treasury bonds. The Rules also increase the aggregate shareholding limit for foreign investors in A shares of a listed company from 20% to 30%, while that for a single foreign investor remains unchanged. Additionally, strategic investments in listed companies by foreign investors are not subject to such limits.
See the digest for more details.
Further reading
Securities Association of China, Several Opinions on Further Promoting Innovative Development by Securities Business Firms (Draft for Comments)
The Draft proposes for the first time the establishment of a negative list for securities business firms and the gradual realisation of the concept of “whatever is not prohibited by law is fine”. It supports crossover applications for business licences by securities companies, fund companies, futures companies and investment consulting companies and actively promotes the application by private fund managers for public fund management licences. The Draft also supports the entrustment of the investment and operation of social insurance, pension funds, enterprise pension funds and other such long-term funds to professional firms or the establishment of professional securities business firms therefor.
See the digest for more details.
Further reading
Banking
People's Bank of China, Measures for the Administration of the Online Payment Business of Payment Organisations (Draft for Comments)
Pursuant to the Draft, a payment organisation may not provide online payment services for a transaction between a payee and a physical merchant. A single consumption transaction amount from the payment account of an individual may not exceed Rmb5,000, and the monthly aggregate consumption transaction amounts from all of the payment accounts of an individual customer may not exceed Rmb10,000.
See the digest for more details.
Further reading
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