Legislation roundup: Foreign exchange, listed companies and property market

Foreign exchange

People's Bank of China, Circular on Strengthening the Macro Prudential Administration of Forward Exchange Sales
中国人民银行关于加强远期售汇宏观审慎管理的通知

Financial institutions (including finance companies) that engage in forward exchange sale agency business for their customers are required to contribute to an exchange risk reserve. The rate for the reserve is provisionally set at 20%.

Further reading
PRC Regulations for the Control of Foreign Exchange (2nd Revision)
Circular on Foreign Exchange Control Issues Relevant to the Renminbi and Foreign Currency Swap Services Provided by Designated Foreign Exchange Banks to Clients


Capital Markets

China Securities Regulatory Commission, Ministry of Finance, State-owned Assets Supervision and Administration Commission of the State Council and China Banking Regulatory Commission, Circular on Encouraging Mergers and Restructurings, Distributions of Cash Dividends and Share Buybacks by Listed Companies
证监会、财政部、国资委、银监会关于鼓励上市公司兼并重组、现金分红及回购股份的通知

Listed companies are encouraged to increase the percentage of their profit distributions accounted for by extra cash dividends, and those that satisfy extra dividend conditions are encouraged to implement interim distributions of extra dividends.

Further reading
Guidelines for Risk Management by Commercial Banks of Loans Extended for Mergers and Acquisitions
Circular on Matters Relevant to Further Implementing Cash Dividends by Listed Companies

Real Property

Ministry of Housing and Urban-rural Development, Ministry of Finance and People's Bank of China, Circular on Revising the Percentage of the Minimum Down Payment When Purchasing Residential Premises with a Personal Housing Loan from the Housing Reserve
住房和城乡建设部、财政部、中国人民银行关于调整住房公积金个人住房贷款购房最低首付款比例的通知

Where a resident household that owns a residential premises unit and has discharged in full the corresponding housing loan again applies for an entrusted loan from the housing reserve to purchase a residential premises unit with a view to improving its living conditions, the percentage of the minimum down payment is reduced from 30% to 20%.

Further reading
Circular on Continuing to Duly Regulate and Control the Real Property Market
Circular on Issues Relevant to Improving the Regulation and Control of the Real Property Market