Legislation roundup: Arbitration, FDI and factoring
November 14, 2019 | BY
Susan MokShanghai FTZ allows foreign arbitration institutions to establish offices in its Lingang New Area, foreign investors will be allowed a majority shareholding in securities companies in 2020 and business restrictions on factoring enterprises are made clearer.
Dispute Resolution
Shanghai Municipality, Measures for the Administration of the Establishment of Business Offices in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone by Foreign Arbitration Institutions
A non-profit arbitration institution lawfully established in a foreign country or the Hong Kong or Macao Special Administrative Region or Taiwan or an institution that engages in arbitration business established by an international organization to which China is a member is allowed to establish a business in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone.
It may engage in foreign-related arbitration business in respect of civil or commercial disputes arising in fields such as international commerce, maritime affairs or investment.
Further reading
FDI
State Council, Opinions on Further Duly Carrying Out the Work Associated With the Utilization of Foreign Investment
The national and pilot free trade zone negative lists for foreign investment access will continue to be downsized.
In 2020, the restriction on foreign investors having a shareholding percentage of not more than 51% in securities companies, securities investment fund management companies, futures companies and life insurance companies will be abolished.
Further reading
Financing
General Office of the China Banking and Insurance Regulatory Commission, Circular on Strengthening the Regulation of Commercial Factoring Enterprises
A commercial factoring enterprise may not perform any of the following acts or engage in any of the following business:
(i) taking or taking in a disguised manner deposits from the public;
(ii) seeking financing through online credit information intermediary firms, various local exchanges, asset management firms or private investment funds;
(iii) borrowing or borrowing in a disguised manner funds from another commercial factoring enterprise; or
(iv) extending loans or extending loans on behalf of a third party.
Further reading
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- 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
Already a subscriber? Log In Now