Legislation roundup: FDI Catalogue, risk management and banks' off-balance sheets
December 08, 2016 | BY
Katherine JoThe NDRC and MOFCOM have drafted the basis for the coming FDI negative list, the CSRC has tightened risk control on asset management and the CBRC has broadened scrutiny over off-balance sheet businesses
FDI
National Development and Reform Commission and Ministry of Commerce, Amendment Draft for the <Foreign Investment Industrial Guidance Catalogue>
The Draft reduces the 93 restrictive measures of the 2015 version of the Catalogue (including 19 in the encouraged category with shareholding percentage requirements, 38 in the restricted category and 36 in the prohibited category) to 62. There is major relaxation in industries such as passenger transport by road, credit check and rating services, rail transport equipment, automotive electronics and batteries for alternative energy vehicles, non-conventional oil and gas, precious metals and lithium ores.
The Draft consolidates the items in the encouraged category with shareholding percentage requirements, and items in the restricted and prohibited categories to form the special administrative measures for access of foreign investments (the negative list for foreign investment access).
See the digest for more details.
Further reading
Capital Markets
China Securities Regulatory Commission, Tentative Provisions for the Administration of the Risk Control Metrics of Specific Client Asset Management Subsidiaries of Fund Management Companies
A transitional arrangement under which the norms will be achieved gradually shall be adopted, according, on the whole, an 18-month transition period. However, within 12 months and 18 months after the issuance and implementation of the provisions, at least 50% and 100% of the set standards for each of the risk control norms shall be achieved respectively.
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Further reading
Banking
China Banking Regulatory Commission, Guidelines for Managing the Risks of the Off-Balance-sheet Business of Commercial Banks (Draft for Comments on Amendments)
The Guidelines expand the scope of off-balance-sheet business to security and undertakings, investment and financing services conducted on an agency basis, intermediary services, and other types, and propose that commercial banks should establish a system for the management of the limits on off-balance-sheet business risks.
See the digest for more details.
Further reading
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