Legislation roundup: Blockchain, share buybacks and insurance asset management

November 14, 2018 | BY

Susan Mok

Blockchain information services will be subject to record filing, listed companies are encouraged to buy back their shares and insurance capital may be invested to alleviate liquidity risks of listed companies

Cybersecurity

Cyberspace Administration of China, Provisions for the Administration of Blockchain Information Services (Draft for Comments)

国家互联网信息办公室区块链信息服务管理规定 (征求意见稿)

Within 10 workings days from the date on which it commences providing services, a blockchain information service provider shall carry out the record filing procedures by filling providing information such as the service provider, the type of service, form of the service, the applicable sector and server address.

Further reading

PRC Cybersecurity Law

Cracking China's Cybersecurity Law

National Cyberspace Security Strategy

Cybersecurity Compliance

Capital markets

China Securities Regulatory Commission, Ministry of Finance and State-owned Assets Supervision and Administration Commission of the State Council, Opinions on Supporting Listed Companies in Buying Back Their Shares

中国证券监督管理委员会、财政部、国务院国有资产监督管理委员会关于支持上市公司回购股份的意见

When a listed company's share price is less than its book value of equity per share (BVPS) or if the drop in its share price within 20 trading days reaches 30% in the aggregate, it may buy back its shares to safeguard the company's value and shareholders' equity.

Further reading

PRC Company Law (2018 Revision)

Provisions on Several Issues Concerning the Application of the《PRC Company Law》(4)

Summary and Commentary: Interpretation IV of the PRC Company Law

Insurance

China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Creation of Dedicated Products by Insurance Asset Management Companies

中国银行保险监督管理委员会关于保险资产管理公司设立专项产品有关事项的通知

Insurance companies are allowed to create dedicated products to alleviate the liquidity risks arising from the pledge of the stock of quality listed companies. Such products may invest in listed companies' shares, publicly offered bonds and privately offered convertible bonds.

Further reading

Circular on Matters Relevant to Further Strengthening the Regulation of the Investment of Insurance Capital in Shares

Circular on Matters Relevant to the Investment of Insurance Capital in Preference Shares

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