Legislation roundup: Private funds, ICOs, and interbank NCDs
September 18, 2017 | BY
Katherine Jo &clp articles &The State Council has specified exit mechanisms for VC funds, authorities have jointly cracked down on virtual currency trading, and the PBOC has banned banks from issuing long-term interbank negotiable certificates of deposit
Private Equity
Legislative Affairs Office of the State Council, Tentative Regulations for the Administration of Private Investment Funds (Draft for Comments)
The Draft sets forth regulatory requirements in respect of the private fund industry from many aspects, such as regulatory scope, private fund manager, private fund custodian, offering activities, investment operations, provision of information, industry self-regulation, oversight and special regulations for venture capital funds.
A venture capital fund may divest by means such as listing and transfer, negotiated transfer, buyback of equity by the investee enterprise as well as acquisition and restructuring.
Further reading
Capital Markets
People's Bank of China, Office of the Central Leading Group for Cyberspace Affairs, Ministry of Industry and Information Technology, State Administration for Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, Announcement on Guarding Against the Risks of Coin Offerings and Financing
All coin offering and financing activities shall cease from September 4, 2017.
No so-called token financing trading platform may engage in exchange between legal tender and tokens or “virtual money”, trade in or as a central counterparty trade in tokens or “virtual money” or provide pricing, information intermediation or other such services for tokens or “virtual money”.
Further reading
Banking
People's Bank of China, Announcement [2017] No.12
Starting from September 1 2017, financial institutions are not allowed to issue new interbank negotiable certificates of deposit with a term of more than one year. Interest of such certificates may accrue at a fixed rate or variable rate.
Further reading
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now