Legislation roundup: Social insurance payments, consumer protection and debt & equity financing

See the full translation.

Further reading

PRC Social Insurance Law

China to cut social security burden on workers and companies

Consumer Rights

Supreme People's Court, Interpretation Several Issues Concerning the Application of the Law in the Trial of Consumer-related Civil Public Interest Litigation Cases

最高人民法院关于审理消费民事公益诉讼案件适用法律若干问题的解释

Where the goods or services provided by a business operator could jeopardize the personal or property safety of consumers without providing a true explanation and an express warning, or without indicating the correct method of using the goods or receiving the services or the method of preventing the occurrence of the harm, a civil public interest litigation case may be filed with the people's court.

Further reading

PRC Law on the Protection of the Rights and Interests of Consumers (2nd Revision)

What the consumer protection law means for foreign businesses

Banking

China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China, Guiding Opinions on Supporting Intensification of Innovation by Banking Financial Institutions to Launch a Pilot Project for Interlinked Investment in, and Lending to, Scientifically Innovative Enterprises

中国银行业监督管理委员会、科技部、中国人民银行关于支持银行业金融机构加大创新力度 开展科创企业投贷联动试点的指导意见

With the new “interlinked investment and lending” arrangement, pilot domestic Chinese banks in pilot regions are allowed to combine “extension of credit” and “equity investment” through a subsidiary in its group that has investment functions which, through relevant system arrangements, allows investment returns to offset credit risks and realize a matching of scientifically innovative enterprise credit risks and returns.

See the digest for more details.

Further reading

Announcement on Issues Relevant to Enterprise Income Tax on Legal Person Partners of Venture Capital Firms Organized as Limited Partnerships

Operational Guidelines for the Private Equity Investment Trust Business of Trust Companies

Employment

Ministry of Human Resources and Social Security and Ministry of Finance, Circular on Reducing Social Insurance Premiums in Stages

人力资源社会保障部、财政部关于阶段性降低社会保险费率的通知

Commencing from May 1 2016, provinces, municipalities or regions in which the percentage of basic old-age insurance premiums of enterprise employees paid by the enterprise exceeds 20%, such ratio shall be reduced to 20%. The total unemployment insurance premium rate may be reduced in stages to 1% to 1.5% on the basis of the reduction of 1% in 2015.

See the full translation.

Further reading

PRC Social Insurance Law

China to cut social security burden on workers and companies

Consumer Rights

Supreme People's Court, Interpretation Several Issues Concerning the Application of the Law in the Trial of Consumer-related Civil Public Interest Litigation Cases

最高人民法院关于审理消费民事公益诉讼案件适用法律若干问题的解释

Where the goods or services provided by a business operator could jeopardize the personal or property safety of consumers without providing a true explanation and an express warning, or without indicating the correct method of using the goods or receiving the services or the method of preventing the occurrence of the harm, a civil public interest litigation case may be filed with the people's court.

Further reading

PRC Law on the Protection of the Rights and Interests of Consumers (2nd Revision)

What the consumer protection law means for foreign businesses

Banking

China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China, Guiding Opinions on Supporting Intensification of Innovation by Banking Financial Institutions to Launch a Pilot Project for Interlinked Investment in, and Lending to, Scientifically Innovative Enterprises

中国银行业监督管理委员会、科技部、中国人民银行关于支持银行业金融机构加大创新力度 开展科创企业投贷联动试点的指导意见

With the new “interlinked investment and lending” arrangement, pilot domestic Chinese banks in pilot regions are allowed to combine “extension of credit” and “equity investment” through a subsidiary in its group that has investment functions which, through relevant system arrangements, allows investment returns to offset credit risks and realize a matching of scientifically innovative enterprise credit risks and returns.

See the digest for more details.

Further reading

Announcement on Issues Relevant to Enterprise Income Tax on Legal Person Partners of Venture Capital Firms Organized as Limited Partnerships

Operational Guidelines for the Private Equity Investment Trust Business of Trust Companies