Legislation roundup: FTZ reform, interbank bond market and independent guarantees
November 24, 2016 | BY
Katherine Jo &clp articles &The Shanghai FTZ has eased FX conversions for personal accounts, lower entry requirements for the interbank bond market have been set for non-financial institutions and the SPC has equally recognized both domestic and foreign independent guarantees
Capital Markets
Shanghai Head Office of the People's Bank of China, Circular on Further Expanding the Cross-border Financial Service Functions of Pilot Free Trade Zones to Support Scientific and Technological Innovation and the Real Economy
With a view to facilitating the bringing in of foreign talent and serving the development of globally influential centers of scientific and technological innovation, the opening of accounts for foreign high-level talent satisfying relevant recognition standards by financial institutions on free trade accounting units (FTF accounts) is supported.
Further reading
National Association of Financial Market Institutional Investors, Announcement on Revising the Access Requirement of Qualified Non-financial Institution Investors for the Interbank Bond Market
The interbank bond market access requirement for investment companies or other institutions of “having net assets of not less than Rmb30 million” has been revised to “having or managing financial assets of net value of not less than Rmb10 million if they have completed registration with the relevant administrative department or its authorized self-disciplinary industry organization in accordance with the law (net assets of not less than Rmb10 million for other organizations).”
Further reading
Financing
Supreme People's Court, Provisions on Several Issues Concerning the Trial of Independent Guarantee Dispute Cases
If the parties provide that an independent guarantee shall apply in a domestic transaction and one of the parties claims that the provisions on the independence of the guarantee are invalid on the grounds that the independent guarantee does not have a foreign-related element, the people's court shall reject such claim.
Further reading
Capital Markets
Shanghai Head Office of the People's Bank of China, Circular on Further Expanding the Cross-border Financial Service Functions of Pilot Free Trade Zones to Support Scientific and Technological Innovation and the Real Economy
With a view to facilitating the bringing in of foreign talent and serving the development of globally influential centers of scientific and technological innovation, the opening of accounts for foreign high-level talent satisfying relevant recognition standards by financial institutions on free trade accounting units (FTF accounts) is supported.
Further reading
National Association of Financial Market Institutional Investors, Announcement on Revising the Access Requirement of Qualified Non-financial Institution Investors for the Interbank Bond Market
The interbank bond market access requirement for investment companies or other institutions of “having net assets of not less than Rmb30 million” has been revised to “having or managing financial assets of net value of not less than Rmb10 million if they have completed registration with the relevant administrative department or its authorized self-disciplinary industry organization in accordance with the law (net assets of not less than Rmb10 million for other organizations).”
Further reading
Financing
Supreme People's Court, Provisions on Several Issues Concerning the Trial of Independent Guarantee Dispute Cases
If the parties provide that an independent guarantee shall apply in a domestic transaction and one of the parties claims that the provisions on the independence of the guarantee are invalid on the grounds that the independent guarantee does not have a foreign-related element, the people's court shall reject such claim.
Further reading
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