Legislation roundup: Outbound FX, asset management, and law firms
December 14, 2017 | BY
Katherine Jo &SAFE has required offshore loans to comply with outbound investment policy, roundabout wealth management activities have been suppressed, and Guangdong has broadened the business scope for Hong Kong/Macao law firms
Outbound
General Affairs Department of the State Administration of Foreign Exchange, Circular on Improving Exchange Control in Connection with the Provision of Domestic Security by Commercial Banks for Foreign Loans
If the proceeds of a foreign loan backed by domestic security are directly or indirectly used to acquire equity in, or claims on, another offshore organization, such investment shall comply with the relevant policy orientation of the state in respect of outbound investment and the regulations of relevant domestic authorities on outbound investment.
Further reading
Banking
People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission and State Administration of Foreign Exchange, Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (Draft for Comments)
A financial institution may not provide roundabout services for the asset management product of another financial institution for the purpose of circumventing regulatory requirements in respect of the scope of investment, leverage constraints, etc.
Further reading
Guangdong
Guangdong Province, Several Policy Measures for Further Expanding Opening up to and Actively Utilizing Foreign Investment
Promoting the expansion of the scope of legal matters that associations of Hong Kong/Macao and mainland law firms may accept and handle
When the provincial-level fiscal year contribution by the headquarters or regional headquarters of a foreign multinational corporation exceeds Rmb100 million for the first time, the provincial finance department will award it a one-time reward equivalent to 30% of its provincial-level fiscal contribution for the year in question, up to a maximum of Rmb100 million.
Further reading
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