Legislation roundup: Perpetual bonds, uninhabited islands and judicial interpretations
May 16, 2019 | BY
Susan MokInsurance companies are required to compute the minimum capital for perpetual bond investments, Guangdong adopts market rules in granting of island use rights and formulation of judicial interpretations may solicit public comments.
Insurance
China Banking and Insurance Regulatory Commission, Rules for the Regulation of the Solvency of Insurance Companies; Answers to Questions No.2: Perpetual Capital Bonds
An insurance company that invests in the perpetual capital bonds issued by a bank shall compute the minimum capital for the risk of default by the transaction counterparty. Where the risk exposure is the book value, the fundamental risk factor of a policy bank or a large state-controlled commercial bank shall be 0.20 and that of a national joint stock limited commercial bank shall be 0.23.
See the digest for more details.
Further reading
Real Property
Guangdong Province, Measures for the Market-based Granting of Use Rights to Uninhabited Islands (Trial Implementation)
Where there are special requirements in respect of the use of the granted island, development objectives, ecological protection and restoration, qualification conditions of the holder of the island use rights, etc. and there are three or more applicants that have indicated an interest in using the island, the grant shall be effected through an invitation of bids.
Further reading
Legal System
Supreme People's Procuratorate, Provisions for Work on Judicial Interpretations (Amended)
The "proposals on the formulation of judicial interpretations put forth by relevant authorities, associations or other organizations and citizens" shall be treated as one of the key sources for initiation of a project. Following a decision thereon taken by the chief procurator, comments may be sought from the public through media such as newspapers and the internet on judicial interpretations that would have a bearing on the immediate interests of the mass public.
Further reading
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