Legislation roundup: Banking in the FTZ, insurance capitals in fund trust pools and M&A review committees

Free trade zone

Shanghai Office of the China Banking Regulatory Commission, Circular on the Trial Implementation of Banking Regulation Related Systems and Arrangements in the China (Shanghai) Pilot Free Trade Zone
上海银监局关于试行中国(上海)自由贸易试验区银行业监管相关制度安排的通知

The Circular expressly provides that when a national Chinese-invested commercial bank (excluding the Postal Saving Bank), local Shanghai bank, foreign-funded bank with legal personality and branch of a foreign bank establishes, changes or terminates an establishment at a level lower than branch in the Zone, the prior approval of the Shanghai Office of the China Banking Regulatory Commission is not required, with an after-the-event reporting system implemented instead, save in the case where a bank has not yet established a governing branch at the level of branch or above in the Zone.

See the digest for more details.

Further reading
Opinions on Further Opening Value-added Telecommunications Services to Foreign Investment in the China (Shanghai) Pilot Free Trade Zone
General Plan for the China (Shanghai) Pilot Free Trade Zone
Shanghai Municipality, Special Administrative Measures for Foreign Investment Access in the China (Shanghai) Pilot Free Trade Zone (Negative List)
China Banking Regulatory Commission, Circular on Issues Relevant to the Banking Regulation in the China (Shanghai) Pilot Free Trade Zone


Insurance

China Insurance Regulatory Commission, Circular on Matters Relevant to the Investment of Insurance Capital in Pooled Fund Trust Plans
中国保险监督管理委员会关于保险资金投资集合资金信托计划有关事项的通知

When insurance capital is invested in pooled fund trust plans, the underlying assets are limited to financing type assets and to unlisted equity type assets the risks of which are controllable. The credit rating of a fixed return pooled fund trust plan may not be less than A or the equivalent thereof as rated by a domestic credit rating agency. Investment in a standalone trust or in a trust plan the underlying assets of which fall in an industry expressly prohibited by the state is prohibited.

Further reading
Circular on Investment in Relevant Financial Products with Insurance Proceeds
Implementing Rules for the Pooled Asset Management Business of Securities Companies


M&A

China Securities Regulatory Commission, Working Rules for the Listed Company Acquisition and Restructuring Review Committee (as Amended in 2014)
中国证券监督管理委员会上市公司并购重组审核委员会工作规程（2014年修订）

Investment representatives of certain market buyers are added as members of the professional group of the Committee, i.e. the institutional investor group. The existing finance group and asset valuation group are merged, but the sources of finance members and asset valuation members remain unchanged.

See the digest for more details.

Further reading
Guidelines for Anti-monopoly Filings in Connection with Mergers and Acquisitions of Domestic Enterprises by Foreign Investors
Provisions for the Acquisition of Domestic Enterprises by Foreign Investors (Revised)