Legislation roundup: Delisting, loan-to-deposit ratios and reverse mortgage endowment insurance

Capital markets

China Securities Regulatory Commission, Several Opinions on Reforming, Improving and Strictly Implementing the System for Delisting Listed Companies (Draft for Comments)
中国证券监督管理委员会关于改革完善并严格实施上市公司退市制度的若干意见（征求意见稿）

The Draft enumerates seven circumstances under which voluntary delisting is triggered by a takeover, buyback, merger by absorption or other market activities. With respect to the special character of voluntary delisting, it sets forth specific arrangements in respect of the implementation procedure, follow-up arrangements, etc that differ from those for mandatory delisting, including requiring a super majority vote of the shareholders' general meeting for adoption, engagement of an independent financial advisor to provide professional opinions, requiring the independent directors to state their opinions, etc. Externally, the Opinions require the submission of a delisting application to, and the consent of, the stock exchange, so as to guard against possible improper acts committed in the course of voluntary delisting that harm the interests of small and medium shareholders. With respect to violations of the law in respect of which the market reacts strongly, such as fraud and violation of the law involving the disclosure of material information, a system of mandatory delisting of companies that commit material violations of the law is implemented.

See the digest for more details.

Further reading
Several Opinions on Further Promoting the Healthy Development of Capital Markets
PRC Securities Law


Banking

China Banking Regulatory Commission, Circular on Revising the Basis for Calculating the Loan-to-Deposit Ratios of Commercial Banks
中国银行业监督管理委员会关于调整商业银行存贷比计算口径的通知

The CBRC shall implement regulatory assessment of the loan-to-deposit ratios of the renminbi business of commercial banks, and monitor the loan-to-deposit ratios of their combined renminbi and foreign currency business and their foreign currency business. When calculating the loan-to-deposit ratios, banks shall take out six items including loans to micro and small enterprises.

See the digest for more details.

Further reading
Circular on Supporting Commercial Banks to Further Improve the Financial Services for Small Enterprises
Measures for the Administration of the Leverage Ratio of Commercial Banks


Insurance

China Insurance Regulatory Commission, Guiding Opinions on Launching Pilot Projects for Senior Housing Reverse Mortgage Endowment Insurance
中国保险监督管理委员会关于开展老年人住房反向抵押养老保险试点的指导意见

The CIRC is launching pilot projects for senior housing reverse mortgage endowment insurance in Beijing, Shanghai, Guangzhou and Wuhan. An insurance company that applies for pilot project qualifications shall have been in business for at least five years and have registered capital of not less than Rmb2 billion. Customers should be offered a cooling-off period of at least 30 calendar days and may terminate the contract during this period.

See the digest for more details.

Further reading
PRC Insurance Law