Legislation roundup: SOE reform, insurance PE funds and asset-backed plans

State-owned Enterprises

Central Committee of the Communist Party of China and State Council, Guiding Opinions on Intensifying Reform of State-owned Enterprises
中共中央、国务院关于深化国有企业改革的指导意见

The Opinions classify state-owned enterprises (SOEs) into commercial SOEs in fully competitive sectors (allowing a non-controlling state-owned interest), commercial SOEs in sectors having a bearing on national security or national economy or in sectors taking up important special missions, as well as public service SOEs.

Further reading:
Guidelines for Risk Management by Commercial Banks of Loans Extended for Mergers and Acquisitions
SOE reform gets a push, and a pull
China First Capital interview: Cashing in and cashing out
The rise of Chinese private equity

Insurance

China Insurance Regulatory Commission, Circular on Matters Relevant to the Establishment of Insurance Private Equity Funds
中国保险监督管理委员会关于设立保险私募基金有关事项的通知

Insurance funds may establish private equity funds, their scope including growth funds, buyout funds, emerging strategic industry funds, mezzanine funds, immovable property funds, venture capital funds as well as funds of funds that have the foregoing as their main investment targets.

Further reading:
PRC Securities Investment Fund Law (Revised in 2015)
Tentative Measures for the Administration of the Application of Insurance Capital (Revised)
China First Capital interview: Cashing in and cashing out
The rise of Chinese private equity

China Insurance Regulatory Commission, Tentative Measures for the Administration of the Asset-backed Plan Business
中国保险监督管理委员会资产支持计划业务管理暂行办法

Where an insurance institution invests in beneficiary certificates of asset-backed plans, it shall comply with the principles of soundness and security and strengthen asset-liability matching. During the life of an asset-backed plan, the anticipated cash flow generated by the underlying assets shall cover the asset-backed plan's forecast investment returns and investment principal.

Further reading:
Tentative Measures for the Administration of the Application of Insurance Capital (Revised)
PRC Trust Law
PRC Insurance Law (Revised in 2015)