Legislation roundup: Futures market, securities JV and third-party payment firms
March 30, 2018 | BY
Susan Mok &China opens up its futures market and third-party payment market, as well as allowing a foreign controlling interest in securities JVs.
Capital Markets
Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission, Circular on Tax Policies for Supporting the Opening of Crude Oil and Other Such Commodities Futures Markets to Foreign Investors
Where a foreign institutional investor (including a foreign brokerage) does not have an establishment in China, or although it does have such an establishment, the income derived by it is not actually connected to its establishment, the income (excluding income from the delivery of the commodity) derived by it from the trading of crude oil futures in China shall provisionally be exempt from enterprise income tax.
Further reading
China Securities Regulatory Commission, Measures for the Administration of Foreign-invested Securities Companies (Draft for Comments)
The Draft permits foreign investors to have a controlling interest in equity joint venture securities companies, and the conditions applicable to the domestic shareholders of an equity joint venture securities house are consistent with those applicable to the shareholders of other securities houses.
Further reading
Banking
People's Bank of China, Announcement [2018] No.7
If a foreign institution proposes to offer electronic payment services for the domestic transactions and cross-border transactions of entities in China, it shall establish a foreign-invested enterprise in China and secure a payment business permit in compliance with the conditions, and by the procedure, set forth in the Measures for the Administration of Payment Services of Non-financial Institutions.
Further reading
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