Legislation roundup: FTZ reform, M&A disclosure, sovereign bonds, and Shanghai R&D
October 13, 2017 | BY
Katherine Jo &The “Permit and License Dissociation” reform has been expanded to the other 10 FTZs, the CSRC has tightened disclosure requirements on listed company M&A, the PBOC has set standards for sovereign bond underwriting syndicates, and Shanghai has offered incentives for foreign R&D centers
Examination and Approval
State Council, Opinions on Expanding the Pilot Project for the “Permit and License Disassociation” Reform to a Wider Area
The method for the pilot project for the “permit and license disassociation” reform implemented in Pudong New Area, Shanghai shall be reproduced and expanded to the 10 pilot free trade zones in Tianjin, Liaoning, Zhejiang, Fujian, Henan, Hubei, Guangdong, Chongqing, Sichuan and Shaanxi.
This will involve direct abolition of examination and approval, replacement of examination and approval by record filing, and implementation of the inform and undertake system.
Further reading
M&A
China Securities Regulatory Commission, Guidelines for Contents and Formats for Information Disclosure by Companies That Offer Securities to the Public (No.26): Material Asset Restructurings of Listed Companies (Revised in 2017)
If the transaction counterparty is a partnership, a disclosure penetrating to the ultimate investors is to be made. Additionally, the affiliated relationships between the partners/ultimate investors and the other relevant entities involved in the contemplated transaction are to be disclosed.
Further reading
Capital Markets
Ministry of Finance, People's Bank of China and China Securities Regulatory Commission, Measures for the Administration of the Formation of Sovereign Bond Underwriting Syndicates
To act as a member of a book-entry sovereign bond underwriting syndicate, a deposit-taking financial institution shall have registered capital of not less than Rmb500 million or total assets of not less than Rmb20 billion and non-deposit taking financial institution shall have registered capital of not less than Rmb1 billion.
Further reading
TMT
Shanghai Municipality, Several Opinions on Further Supporting the Participation by Foreign-invested Research and Development Centers in the Establishment of Globally Influential Scientific and Technological Innovation Centers in Shanghai
Global research and development centers with independent legal personality that have more than 100 research and development personnel in Shanghai will be offered Rmb5 million in startup assistance; for rent of office space not exceeding 1,000 square meters at a daily rate of not more than Rmb8 per square meter, they will be offered premises lease assistance of 30% of the rent for three years.
Further reading
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