Legislation roundup: MNC headquarters, bankruptcy cases and hedge funds
February 16, 2017 | BY
Katherine Jo &clp articles &Shanghai has recognized headquarters-like organizations, the SPC has permitted the transfer of enforcement cases for bankruptcy review and the CSRC has tightened risk controls for hedge funds
FDI
Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations
The Provisions place headquarters-like organizations within the scope of application of the policies. The parent of such an organization is required to have total assets of not less than US$200 million, and have invested in and established not less than two foreign-invested enterprises in China, at least one of which is registered in Shanghai. The Provisions abolish the requirements in respect of the corporate form and scope of business of the regional headquarters of multinational corporations.
See the digest for more details.
See the full translation.
Further reading
Insolvency
Supreme People's Court, Guiding Opinions on Several Issues Concerning the Transfer of Enforcement Cases for Bankruptcy Review
The transfer of an enforcement case for bankruptcy review shall satisfy all of the following conditions:
(1) the judgment debtor being an enterprise with legal personality;
(2) the judgment debtor or the enforcement applicant in any enforcement case involving the judgment debtor agreeing in writing to the transfer of the enforcement case for bankruptcy review; and
(3) the judgment debtor being unable to discharge its debts due, and its assets being insufficient to discharge all of its debts or its clearly being insolvent.
See the digest for more details.
Further reading
Capital Markets
China Securities Regulatory Commission, Guiding Opinions on Hedging Strategy Funds
The Opinions abolish the security mechanism for joint and several liability, improve the risk control requirements for hedging strategy funds, set an upper limit on the size of hedging strategy funds to prevent relevant risks and improve the requirements in respect of risk management by fund managers.
A hedging strategy fund's investment in robust assets may not be less than 80% of its net asset value.
See the digest for more details.
Further reading
FDI
Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations
The Provisions place headquarters-like organizations within the scope of application of the policies. The parent of such an organization is required to have total assets of not less than US$200 million, and have invested in and established not less than two foreign-invested enterprises in China, at least one of which is registered in Shanghai. The Provisions abolish the requirements in respect of the corporate form and scope of business of the regional headquarters of multinational corporations.
See the digest for more details.
See the full translation.
Further reading
Insolvency
Supreme People's Court, Guiding Opinions on Several Issues Concerning the Transfer of Enforcement Cases for Bankruptcy Review
The transfer of an enforcement case for bankruptcy review shall satisfy all of the following conditions:
(1) the judgment debtor being an enterprise with legal personality;
(2) the judgment debtor or the enforcement applicant in any enforcement case involving the judgment debtor agreeing in writing to the transfer of the enforcement case for bankruptcy review; and
(3) the judgment debtor being unable to discharge its debts due, and its assets being insufficient to discharge all of its debts or its clearly being insolvent.
See the digest for more details.
Further reading
Capital Markets
China Securities Regulatory Commission, Guiding Opinions on Hedging Strategy Funds
The Opinions abolish the security mechanism for joint and several liability, improve the risk control requirements for hedging strategy funds, set an upper limit on the size of hedging strategy funds to prevent relevant risks and improve the requirements in respect of risk management by fund managers.
A hedging strategy fund's investment in robust assets may not be less than 80% of its net asset value.
See the digest for more details.
Further reading
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