Legislation roundup: Local government bonds, asset restructurings and social insurance

November 21, 2018 | BY

Susan Mok

Local government bonds are offered to individual investors; information disclosure of restructurings of listed companies is simplified; and Hong Kong, Macao and Taiwan residents will enroll in the same social insurance schemes as local mainland residents

Capital Markets

People's Bank of China, Ministry of Finance and China Banking and Insurance Regulatory Commission, Circular on Launching Over-the-Counter Business for Local Government Bonds on the National Interbank Bond Market

An institution engaging in over-the-counter business may engage in over-the-counter business involving outstanding local bonds recognized by the issuer as well as that involving newly offered local bonds the offer targets of which include over-the-counter investors.

Further reading

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 2018)

The disclosure of the business development situation and main financial indicators of the transaction counterparties and the names of their subsidiaries is no longer required. The simplified or deferred disclosure of details relating to a transaction such as an overseas acquisition, an invitation of bids/auction/listing on an exchange, etc. is permitted.

Further reading

Social Insurance

Ministry of Human Resources and Social Security, Tentative Measures for the Enrollment of Hong Kong, Macao and Taiwan Residents in Social Insurance in Mainland China (Draft for Comments)

Hong Kong, Macao and Taiwan residents lawfully employed by an organization, such as an enterprise, public institution, association, social service institution, foundation, law firm, accounting firm, etc., lawfully registered in mainland China shall enroll in employee basic old-age insurance, employee basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance in accordance with the law.

Further reading

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