Legislation roundup: China-HK bond connect, block trades, and labor disputes
June 05, 2017 | BY
Katherine Jo &clp articles &The PBOC has confirmed there are no northbound trading limits for the mainland and Hong Kong bond market connect, the CSRC has restricted major shareholders from reducing ownership through block trades, and class arbitration has been introduced for labor disputes
Capital Markets
People's Bank of China, Tentative Measures for the Administration of the Cooperation in Mutual Access between the Mainland and Hong Kong Bond Markets (Draft for Public Comments)
Foreign investors satisfying the requirements of the People's Bank of China may invest in the interbank bond market through “Northbound Trading”. The subject bonds shall be any type of bond that trades on the interbank bond market.
There are no investment limits on “Northbound Trading”.
See the relevant digest for more details.
Further reading
China Securities Regulatory Commission, Several Provisions on the Reduction of Their Shareholdings by the Shareholders, Directors, Supervisors and Senior Management Personnel of Listed Companies
If a major shareholder of a listed company reduces its shareholding by means of a block trade, or, through such a block trade, it reduces its holding of those shares that it held before the company's initial public offering or of shares of the listed company that were offered in a private offering, the transferor and transferee of the shares shall comply with the provisions of the stock exchange on the number of shares that may be involved in a shareholding reduction, the length of time the shares are held, etc.
See the digest for more details.
Further reading
Labor
Ministry of Human Resources and Social Security, Rules for Handling Arbitration of Labor and Public Personnel Disputes
The procedure for handling collective labor and public personnel disputes shall apply when a dispute where the labor side involves at least 10 persons who have common claims is being handled or where the labor dispute arises in connection with the performance of a collective contract.
When hearing a dispute, the arbitration tribunal shall carry out mediation. When necessary, a relevant entity, organization or individual may be asked to participate in the mediation.
See the digest for more details.
Further reading
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