Legislation roundup: Securities lending, insurance capital investment and individual income tax
June 28, 2019 | BY
Susan MokCSRC allows funds to participate in short sale of securities, procedures for setting up insurance asset management plans are simplified and enterprise gifts are taxed.
Capital Markets
China Securities Regulatory Commission, Guidelines for the Involvement in the Securities Lending of the Re-lending Business by Publicly Offered Securities Investment Funds (Trial Implementation)
The following fund products may be involved in securities lending of the re-lending business in accordance with laws and regulations, and the fund contract and/or prospectus:
(1) equity funds and equity-oriented hybrid funds in their lock-in periods;
(2) open-ended stock-index funds and related feeder funds; and
(3) strategic placement funds.
See the full translation.
Further reading
Insurance
General Office of the China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Registration of Asset-backed Plans
Promotion and establishment of asset-backed plans by insurance asset management institutions shall be subject to initial filing and approval with the China Banking and Insurance Regulatory Commission, and subsequent product registration with the China Insurance Asset Registration and Trading System.
See the digest for more details.
Further reading
Tax
Ministry of Finance and State Administration of Taxation, Announcement on the Application of Individual Income Tax Taxable Income Items to Relevant Income Obtained by Individuals
Where an enterprise gives gifts (including online red packets) to individuals outside the entity by random draw in the course of its business publicity, advertising or other such activities, or where an enterprise gives gifts to individuals outside the entity in the course of its annual meeting, a symposium, a celebration or other activity, individual income tax shall be calculated and paid on the gift income obtained by an individual as for the item "causal income", with the exception of gifts such as vouchers, cash coupons or discount coupons that give a discount or rebate on price
Further reading
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