Legislation roundup: Bond investment, insurance capital and receivables pledges

May 23, 2019 | BY

Susan Mok

Foreign investors' bond investments are facilitated, insurance capital's derivatives investments are limited and receivables pledges are made easier

Capital Markets

People's Bank of China and State Administration of Foreign Exchange, Circular on Issues Relevant to Further Facilitating Investment in the Interbank Bond Market by Foreign Institutional Investors (Draft for Comments)

中国人民银行、国家外汇管理局关于进一步便利境外机构投资者投资银行间债券市场有关问题的通知 (征求意见稿)

A foreign institutional investor may, as required for its own investment management, carry out bi-directional non-trade transfer of the interbank bond market bonds held in its qualified foreign institutional investor (QFII/RQFII) bond account and interbank bond market direct investment (Direct Investment) bond account.

See the digest for more details.

Further reading

China's interbank bond market easing analyzed

Circular on Matters Relevant to the Pilot Project for the Investment in Renminbi on the Interbank Bond Market by Foreign Central Banks, International Financial Organizations and Sovereign Wealth Funds

People's Bank of China, Announcement [2016] No.3

China Drafts New Rules to Promote Bond Investments by Foreign Investors

China Banking and Insurance Regulatory Commission, Circular on the Involvement of Insurance Capital in Credit Risk Mitigation Instrument and Credit Protection Instrument Business

中国银保监会办公厅关于保险资金参与信用风险缓释工具和信用保护工具业务的通知

The credit risk mitigation instrument and credit protection instrument business in which insurance capital is involved shall be limited solely to hedging against risks. An insurance group (holding) company, insurance company or insurance asset management company may not act as the credit risk bearing party.

See the digest for more details.

Further reading

Foreign Insurers Key to Solving China's Looming Pension Crisis

Circular on Encouraging Relevant Institutions to Participate in Market-oriented Debt-for-equity Swaps

Banking and Finance

People's Bank of China, Measures for the Registration of Pledges of Accounts Receivable (Draft for Comments on Amendments)

中国人民银行应收账款质押登记办法 (修订征求意见稿)

The current revision revises the shortest initial registration period in Article 12 from six months to one month. Additionally, it revises renewal registration in Article 13 from calculation in years to a shortest period of one month.

Further reading

Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing by Institutions Engaging in Internet Financing (Trial Implementation)

China Plans 12 New Measures to Open up Banking, Insurance Sectors

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]