Legislation roundup: Shanghai/Shenzhen-Hong Kong Stock Connect, power grids and risk management in banks
October 12, 2016 | BY
Katherine Jo &clp articles &The CSRC has clarified that mutual mainland and Hong Kong stock investors enjoy full property rights, the NDRC and NEA have opened up electricity distribution to private investment and the CBRC has held a bank's board of directors responsible for risk management
Capital Markets
China Securities Regulatory Commission, Several Provisions on the Mechanisms to Provide Mutual Trading Access Between the Mainland and Hong Kong Stock Markets
Investors shall, in accordance with the law, enjoy the rights and interests in the stocks that they purchase through the mechanisms to provide mutual trading access between the Shanghai and Hong Kong stock markets.
Such investors shall also perform their reporting and information disclosure obligations in accordance with the law when their purchase of stocks has reached the information disclosure thresholds.
See the digest for more details.
Further reading
Circular on the Issue of Provisionally Exempting the Proceeds Derived in China by QFIIs and RQFIIs from the Transfer of Stocks and Other Such Equity Investment Assets from Enterprise Income Tax
Circular on Tax Policies Relevant to the Pilot Project for the Mechanisms to Provide Mutual Trading Access Between the Shanghai and Hong Kong Stock Markets
Energy
National Development and Reform Commission and National Energy Administration, Measures for the Administration of the Orderly Deregulation of the Electricity Distribution Grid Business
The active participation of private sector capital in incremental electricity distribution grid business and the determination of investment entities through market competition is encouraged.
Grid enterprises are encouraged to establish companies with diverse property rights with private investors through such means as equity cooperation to operate electricity distribution grids.
Further reading
Banking
China Banking Regulatory Commission, Guidelines for the Comprehensive Management of Risks by Banking Financial Institutions
The board of directors of a banking financial institution shall bear ultimate responsibility for the comprehensive risk management
Banking financial institutions that are relatively large in scale or whose business is complex shall have a risk director (chief risk officer).
See the digest for more details.
Further reading
Capital Markets
China Securities Regulatory Commission, Several Provisions on the Mechanisms to Provide Mutual Trading Access Between the Mainland and Hong Kong Stock Markets
Investors shall, in accordance with the law, enjoy the rights and interests in the stocks that they purchase through the mechanisms to provide mutual trading access between the Shanghai and Hong Kong stock markets.
Such investors shall also perform their reporting and information disclosure obligations in accordance with the law when their purchase of stocks has reached the information disclosure thresholds.
See the digest for more details.
Further reading
Circular on the Issue of Provisionally Exempting the Proceeds Derived in China by QFIIs and RQFIIs from the Transfer of Stocks and Other Such Equity Investment Assets from Enterprise Income Tax
Circular on Tax Policies Relevant to the Pilot Project for the Mechanisms to Provide Mutual Trading Access Between the Shanghai and Hong Kong Stock Markets
Energy
National Development and Reform Commission and National Energy Administration, Measures for the Administration of the Orderly Deregulation of the Electricity Distribution Grid Business
The active participation of private sector capital in incremental electricity distribution grid business and the determination of investment entities through market competition is encouraged.
Grid enterprises are encouraged to establish companies with diverse property rights with private investors through such means as equity cooperation to operate electricity distribution grids.
Further reading
Banking
China Banking Regulatory Commission, Guidelines for the Comprehensive Management of Risks by Banking Financial Institutions
The board of directors of a banking financial institution shall bear ultimate responsibility for the comprehensive risk management
Banking financial institutions that are relatively large in scale or whose business is complex shall have a risk director (chief risk officer).
See the digest for more details.
Further reading
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