Legislation roundup: Securities companies, Cryptography Law and Shenzhen FTZ
July 11, 2019 | BY
Susan MokThresholds on controlling shareholders of securities companies are lowered, critical information infrastructure may require the use of commercial cryptography and Shenzhen Free Trade Zone loosens restrictions on foreign investment in construction projects.
Capital Markets
China Securities Regulatory Commission, Provisions for the Administration of the Equity of Securities Companies
Where the business engaged in by a securities company is highly leveraged and there are intersecting risks among multiple items of business, the controlling shareholder shall additionally satisfy the following conditions:
(1) having gross assets of not less than Rmb50 billion and net assets of not less than Rmb20 billion; and
(2) its core main business being pronounced and its main business having been continuously profitable during the previous five years.
Further reading
Data Protection
The 11th Session of the Standing Committee of the 13th National People's Congress, PRC Cryptography Law (Draft)
Where a law, or set of administrative regulations or relevant state provisions requires the use of commercial cryptography to protect critical information infrastructure, the operator thereof shall use commercial cryptography to protect the same and conduct an assessment of the security of the commercial cryptography applications.
Where the network products and services procured and used by the operator of critical information infrastructure or a state authority involves commercial cryptography and could affect national security, the same shall be subject to a national security review.
See the digest for more details.
Further reading
Free Trade Zones
Shenzhen City Working Plan on Several Measures to Support Intensified Reform and Innovation in the Pilot Free Trade Zone
Sino-foreign joint construction projects undertaken in Guangdong (Shenzhen) by wholly foreign-owned construction enterprises in the pilot free trade zone shall not be subject to the investment percentage restrictions on Chinese and foreign parties that govern construction projects.
Further reading
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