Raising the Bar for Securities and Shareholders

The Mainland-Hong Kong Bond Connect permits foreign investors to carry out trading and clearance through onshore nominal accounts opened on the Central Moneymarkets Unit   (CMU) of the Hong Kong Monetary Authority, removing the need to separately open independent accounts onshore, which allows investors to avoid intermediary stages and reduces trading costs. Moreover, once the “Southbound Connect” is launched, domestic investors will also be able to purchase foreign bond products and enrich their investment portfolios.

3. To what extent has foreign investors' access to the interbank bond market eased further?

On the one hand, the Mainland-Hong Kong Bond Connect offers foreign investors a more direct and efficient trading channel. Compared with the need to previously rely on single quotes made to a clearing agent bank to trade, the National Interbank Funding Center, Trading Rules for Mainland-Hong Kong Bond Connect (Trial Implementation) allow foreign investors to send quotes in real time to multiple market-makers through offshore electronic trading platforms and, upon price confirmation, reach a transaction through the trading center system. This not only reduces costs and increases efficiency in trading, but also makes price discovery more advantageous.

The Mainland-Hong Kong Bond Connect also presents a more convenient clearing method for foreign investors participating in the Chinese interbank bond market. As the domestic bond market is segmented, different bond products are held in custody either by China Central Depository & Clearing Co. Ltd. (CCDC) or Shanghai Clearing House (SCH). Foreign investors were previously required to engage a clearing agent with international clearing business capabilities to separately conduct record filing, to open accounts with CCDC and SCH, and carry out onshore clearance through the agent. Now a foreign investor only needs to open a single account on CMU, after which it can carry out clearance through the accounts with CCDC and SCH. This simplification resolves the issues brought by the segmented interbank bond market and reduces account management costs, making it particularly attractive for small and medium investors.

4. How have the requirements for listed company financings increased this year?

The revised Implementing Rules for the Private Offering of Shares by Listed Companies, implemented on February 15, 2017, specify that the pricing reference date is the first day of the offering period, rather than the date of board resolution or shareholders' general meeting resolution. This prevents the offering price for privately-offered shares from substantially deviating from the market price.

The CSRC also issued the Questions and Answers on the Oversight of Offerings: Regulatory Requirements for Guiding and Regulating the Financing Acts of Listed Companies on February 17, setting forth three requirements for reviewing further financings by listed companies:

1. scale of financing: where a listed company applies for a private offering of shares, the number of shares to be offered must not exceed 20% of the total share capital prior to the contemplated offering;
2. frequency of financing: where a listed company applies for an additional offering, rights issue, or private placement, the board resolution date for the contemplated offering must be at least 18 months from the date on which the proceeds from the previous offering were all paid in, with the exclusion of convertible bond or preference share offerings or small-scale rapid financings on ChiNext; and
3. asset allocation: a listed company applying for further financing may not—unless it is a financial enterprise—hold large amounts of tradable financial assets as well as long-term or saleable financial assets, lend to others, or carry out financial investments, such as entrusted wealth management, as at the end of the most recent fiscal year.

5. What are the enhanced compliance and risk control requirements for asset and fund management companies?

The CSRC's Measures for the Administration of the Suitability of Securities and Futures Investors, implemented from July 1, 2017, and the Asset Management Association of China's Implementing Guidelines for the Administration of the Suitability of Investors of Fund Offering Institutions (Trial Implementation) (Guidelines) place higher compliance and risk control requirements on asset management and fund companies.

At the system level, the Guidelines require fund-offering institutions to establish and improve investor suitability management systems that incorporate methods for: fund managers to conduct prudential investigations; conducting risk assessments for fund products or services; and matching products or services with investors.

At the operational level, the Guidelines specifically require “double recording” for onsite fund product sales to ordinary investors, self-examinations of investor suitability management at least once every six months, and regular surveys of a random percentage of ordinary investors who have purchased fund products or services.

Furthermore, the Guidelines also mandate fund-offering institutions to establish an investor assessment database—that includes information provided by investors on forms and any subsequent changes, previous assessment results of ordinary investors, changes in risk-bearing capacity, transformation and review results, risk assessment criteria, and procedural revisions—so as to achieve dynamic management of investor risk ratings.

6. What are the CSRC's key areas of regulatory focus in 2017?

The CSRC appears to be focusing on:

1. strengthening comprehensive stringent regulation in accordance with the law, enhancing dedicated law enforcement actions, and cracking down rigorously on violations including insider trading and market manipulation so as to ensure total market coverage in regulatory enforcement;
2. steadily promoting the development of multi-level market systems, optimizing relevant systems, and guiding the flow of funds into the real economy;
3. preventing and mitigating capital market risks and enhancing risk warning, response, and handling capabilities; and
4. strengthening the protection of the rights and interests of investors, and intensifying efforts to implement systems such as prior indemnification by violators, the pilot project of administrative conciliation, and litigation support.

7. Can you describe the impact of strengthened regulation of equity investments by insurance companies?

Following a number of closely-monitored cases involving the investment of insurance capital in listed companies throughout 2016, the regulators have been paying increasing attention to the application of insurance capital, particularly material equity and stock investments.

A number of policies were released, including the Circular on Matters Relevant to Further Strengthening the Regulation of the Investment of Insurance Capital in Stocks, mandating insurance institutions to obtain CSRC approval and to use their own funds for acquiring a listed company. The policies also prohibit insurance institutions from acquiring a listed company together with a non-insurance person acting in concert, and from using proceeds from their mortgage of stock assets for the investment in listed company stock. The ratios of the book value of equity-type assets invested in by an insurance institution and the book value of a single stock invested in its total assets are also subject to restrictions. The policies greatly prevent insurance institutions from engaging in battles for control over listed companies, and cause them to be more prudent in their ordinary investments in listed stocks.

8. What are the implications of the recently tightened restrictions on block trades?

In May 2017, the CSRC promulgated the Several Provisions on the Reduction of Their Shareholdings by the Shareholders, Directors, Supervisors and Senior Management Personnel of Listed Companies, which impose restrictions on parties such as the controlling shareholder, major shareholders, and pre-IPO shareholders, as well as the director, supervisor, and senior management shareholders of a listed company wishing to reduce their shares on the secondary market through a block trade or transfer by agreement. Limits on the percentage of reduction and the interval between the reduction and prior disclosure have been set. The implementation of the provisions has markedly curbed certain market phenomena, such as acquirers immediately selling a large number of their shares on the secondary market after a major shareholder reduces its ownership by way of a block trade, shareholders carrying out “clearance sales”, and company directors, supervisors, and senior management members reducing their shares through resignation.

9. What is your outlook for the market over the next 12 months? What are the major trends you see emerging?

More stringent regulation of the capital markets. Subject to trends, the authorities may issue rules to further regulate market participants and clamp down on non-compliance. Additionally, reforms relating to new share offerings and listings, further financings, acquisitions, and restructurings will likely be strengthened and the idea of the capital markets servicing the real economy will be further embodied in concrete policies.

Rongsheng Zhang, Partner

Jingtian & Gongcheng

Rongsheng Zhang graduated from Peking University Law School. He became an equity partner of Jingtian & Gongcheng in 2013, which made him one of the youngest equity partners in the firm's 25-year history.

Mr. Zhang's practice focuses on domestic and foreign capital markets, including public and private equity offerings (onshore and offshore), M&A, private equity, early and late-stage venture capital and growth investments, FDI, and bond issuances.

He has represented various companies in hundreds of projects, including many iconic Chinese capital markets transactions, with an aggregate total transaction value of more than $10 billion.

Mr. Zhang's experience includes advising on the backdoor listing for Focus Media through Hedy Holdings; JD Group's spin-off of JD Finance; a $6.7 billion investment in JD Finance by a consortium including Sequoia Capital, Harvest Fund, and China Taiping; and Wanda Cinema Line's IPO, major assets restructurings, and acquisitions. Earlier in his career he served as key legal counsel on state-owned enterprise deals, such as those involving China Shipping, Jinjiang International Hotel Group, and Guangzhou Baiyun Airport.

He continues to act as an external consultant for a number of enterprises and A-share listed companies.

Xiangyang Yi, Partner

Jingtian & Gongcheng

Xiangyang Yi obtained an LL.M. degree from Chicago-Kent Law School, an MBA degree from California University, and a Master's degree in Procedural Law from Xiangtan University. With more than 22 years of legal experience, Mr. Yi joined Jingtian & Gongcheng in 2014.

Mr. Yi specializes in capital markets, particularly in A-share issuance, red chips and private placement, M&A, and VC/PE. His services include conducting due diligence and negotiations, designing deal structures, drafting documents, and issuing legal opinions. Mr. Yi has provided legal services to numerous reputable domestic and international companies, such as China Resources Holdings, Huawei, Overseas Chinese Town, ASPZ, and Tridonic Gmbh & Co KG.

Mr. Yi is the Vice Director of the Securities Law Committee of the Guangdong Lawyers Association and the Executive Director of the Civil and Commercial Law Committee of the Guangdong Law Society. He has been licensed to practice law in PRC since 2004, and works in both Chinese and English.

1. 过去12个月，有哪些影响中国资本市场的重大法规变更？

过去12个月，中国证监会发布/修订了多项对资本市场具有较大影响的部门规章和规范性文件包括：

1. 2016年9月公布并实施的经修订的《上市公司重大资产重组管理办法》，新规对构成“借壳上市”的交易的标准进行了重新定义，使通过相关安排规避借壳的难度大大增加；同时通过规定“壳公司”的负面条件、取消借壳上市的配套融资等方式，客观上抑制了“炒壳”等市场现象；
2. 2017年2月公布并实施的经修订的《上市公司非公开发行股票实施细则》，对非公开发行的定价基准日、发行的股本规模、融资间隔期限作出了进一步的限制性规定，从而遏制了通过定增套利以及上市公司过度融资等行为；
3. 2017年5月公布的《上市公司股东、董监高减持股份的若干规定》，对上市公司控股股东、主要股东、IPO前股东、董监高股东等主体减持股份作出了多项限制。

2.  继“沪港通”及“深港通”开通后，“债券通”的开通将为投资者带来什么利益？

继2014年11月“沪港通”联通上海与香港股市、2016年12月“深港通” 联通深圳与香港股市之后，2017年7月“债券通”亦开通“北向通”，内地与香港债券市场在交易、托管、结算等方面的基础设施实现互联互通。

“北向通”为全球投资者提供了进入中国债券市场的通道。中国债券市场规模达到69万亿元人民币，是仅次于美国和日本的第三大市场，而且由于中国人民银行紧缩的货币政策，中国市场的债券收益率高于许多发达经济体，对于境外投资者来说是一个极具吸引力的市场。

“债券通”允许境外投资者通过香港金管局旗下的债务工具结算系统（CMU）开立的在岸名义账户进行交易及结算，无需在岸另行独立开户，避免了中间环节，显著降低交易成本。另外，未来“南向通”开通后，境内投资者也可以购买国外的债券产品，丰富投资组合。

3. 境外投资者进入银行间债券市场在多大程度上更为便利呢？

一方面，“债券通”为境外投资者提供了更加直接、高效的交易渠道。相较于之前的依靠结算代理银行单一报价进行交易，《全国银行间同业拆借中心“债券通”交易规则（试行）》允许境外投资者通过境外电子交易平台向多家做市商实时发送报价请求，确认回复的价格后通过交易中心系统达成交易，不但降低交易成本，提升交易效率，也在价格发现方面更有优势。

另一方面，“债券通”也为境外投资者投资中国银行间债券市场提供了更为便利的结算方式。由于国内的债券市场是分割的，银行间市场的不同债券品种分别由中央结算公司（中债登）和上海清算所（上清所）托管，因此“债券通”开通之前，外国投资者进入中国债券市场，必须委托具备国际结算业务能力的结算代理人分别在中债登和上清所备案、开户，并通过结算代理人在岸结算。而“债券通”开通之后，外国投资者只需在CMU开设单一账户，并通过CMU在中债登和上清所开立的账户进行结算，解决了银行间债券市场分割带来的不便，降低了账户管理成本，对中小投资者尤其具有吸引力。

4. 今年对上市公司融资有何进一步的要求？

修订后的《上市公司非公开发行股票实施细则》从2017年2月15日起开始实施，将定价基准日明确规定为发行期的首日，取消董事会决议日、股东大会决议日作为定价基准日，避免非公开发行股票出现发行价格严重偏离市价的情况。

另外，2月17日，为规范和引导上市公司理性融资，证监会发布了《发行监管问答—关于引导规范上市公司融资行为的监管要求》，明确了上市公司再融资审核的三点要求：

1. 融资规模上，上市公司申请非公开发行股票的，拟发行的股份数量不得超过本次发行前总股本的20%；
2. 融资频率上，上市公司申请增发、配股、非公开发行股票的，本次发行董事会决议日距离前次募集资金到位日原则上不得少于18个月，前次募集资金不包括发行可转债、优先股和创业板小额快速融资；
3. 资产配置上，上市公司申请再融资时，除金融类企业外，原则上最近一期末不得存在持有金额较大、期限较长的交易性金融资产和可供出售的金融资产、借予他人款项、委托理财等财务性投资的情形。

5. 对资管和基金公司提出了哪些更高的合规和风控要求？

证监会发布的《证券期货投资者适当性管理办法》自2017年7月1日起正式实施，中国证券投资基金业协会亦发布了《基金募集机构投资者适当性管理实施指引(试行)》（以下简称《指引》），为资管和基金公司的合规和风控，提出了更高的要求。

在制度层面上，《指引》要求基金募集机构建立建全投资者适当性管理制度，且明确该制度至少应包括对基金管理人进行审慎调查的方式和方法、对基金产品或者服务进行风险评价的方式或方法、对基金产品或者服务和投资者进行匹配的方法及投资者适当性管理的保障措施和风控制度等内容。

在操作层面上，《指引》提出了向普通投资者现场销售基金产品等业务要进行“双录”留痕，每半年开展一次投资者适当性管理自查，对购买基金产品或服务的普通投资者定期抽取一定比例进行回访等具体要求。

另外，《指引》还要求基金募集机构建立投资者评估数据库，包含投资者填写信息表及历次变动内容、普通投资者过往测评结果、风险承受能力变动情况、转化及审核结果、风险评估标准、程序调整情况等内容，以实现对投资者风险等级进行动态管理。

6. 中国证监会2017年有哪些监管重点？

中国证监会今年监管工作的重点似乎集中在以下几个方面：

1. 强化依法全面从严监管，持续推进专项执法行动，依法严厉打击内幕交易、市场操纵等违法违规行为，确保监管执法覆盖全市场、全类型；
2. 稳步推进多层次资本市场体系建设，优化各项相关制度，引导资金流向实体经济；
3. 防范和化解资本市场风险，提高风险预警、应对和处置能力；
4. 加强投资者权益保护工作，加大违法主体先行赔付、行政和解试点、支持诉讼等制度的实施力度。

7. 您觉得加强了对保险公司股权投资的监管，带来了什么影响？

自2016年以来，受多个与保险资金投资上市公司相关的热点案例影响，监管机构对保险资金运用尤其是重大股权股票投资的关注日趋升级，并出台了多项政策对此予以进一步规范，包括《关于进一步加强保险资金股票投资监管有关事项的通知》等。

根据该等政策，保险机构收购上市公司须事前获得中国保监会核准并使用自有资金；保险机构不得与非保险一致行动人共同收购上市公司，不得以投资的股票资产抵押融资用于上市公司股票投资保险金；保险机构投资权益类资产的账面余额和投资单一股票的账面余额与总资产的比例均受到限制。受该等政策影响，保险机构参与争夺上市公司控制权的情形受到了极大遏制，保险机构对上市公司开展一般股票投资也变得更加谨慎。

8. 最近加强了对大宗交易的限制，这有什么含意呢？

2017年5月，中国证监会发布了《上市公司股东、董监高减持股份的若干规定》。根据新规，上市公司控股股东、主要股东、IPO前股东、董监高股东等主体通过二级市场减持、大宗交易减持和协议转让减持，均受到一些新的限制，该等限制包括减持比例、减持间隔时间、减持前的事先披露等。新规实施后，之前存在的诸如大股东通过大宗交易减持后，受让方立即通过二级市场大量卖出，部分股东进行“清仓式”减持，一些董监高人员通过辞职来实施减持等情形受到了明显抑制。

9. 您对于市场在未来12个月有什么展望？您看到有什么主要趋势在呈现？

从严监管仍然是资本市场监管的主线；根据市场出现的新情况、新热点，监管机构可能出台更多规范各市场参与主体的新规则，资本市场中的不规范现象将受到进一步整治；同时，新股发行和上市、再融资、并购重组的相关机制的改革和推进可能会进一步强化，资本市场服务于实体经济的理念会进一步体现到具体的政策中。

张荣胜 合伙人

竞天公诚律师事务所

张荣胜律师毕业于北京大学法学院。张律师于2013 年成为竞天公诚权益合伙人，是律所25 年以来最年轻的权益合伙人之一。

张律师专注于境内外资本市场法律业务，包括境内外IPO和非公开发行、兼并收购、私募股权投资、风险投资、外商直接投资、债券发行等。

自从业以来，张律师代表各种不同行业和领域的公司，主办了数百个项目，其中不乏中国资本市场上的明星项目，该等项目涉及的交易金额高达百亿美元。

张律师近些年经办的代表性项目包括：分众传媒借壳上市，京东集团分拆京东金融，京东金融66.5亿元A轮融资，万达院线A股IPO及多项重大资产重组和并购等。更早些年，张律师还经办了许多国有企业的相关项目，如中海集运A股IPO及并购中海码头资产，锦江国际酒店H股IPO，白云机场A股非公开发行及并购控股股东跑道资产等。

张律师同时是十数家公司 (包括多家A股上市公司)的常年法律顾问。

易湘洋 合伙人

竞天公诚律师事务所

易湘洋律师获得美国芝加哥肯特法学院法律硕士，美国加州大学工商管理硕士，湘潭大学诉讼法学硕士。易律师从事法律工作逾22年，于2014 年加入竞天公诚。

易律师专业领域为公司境内外发行上市、融资融券、收购兼并、VC/PE投资。易律师提供的法律服务包括但不限于开展尽职调 查、交易结构设计、参加谈判、起草项目文件、提供法律意见等。曾服务过多家国内外知名公司，如华润、华为、华侨城、亚洲资产（ASPZ）及锐高（奥地利）电子等。

易律师于2004年获得中华人民共和国律师资格。易律师担任的社会职务包括广东省律师协会证券法律专业委员会副主任，广东省法学会民商法学研究会常务理事等。易律师的工作语言是中文和英文。