Legislation roundup: H shares, futures exchanges and health insurance

November 21, 2019 | BY

Susan Mok

CSRC allows unlisted H shares to be fully traded and aligns regulation of futures exchanges with international standards while CBIRC tightens its oversight on health insurance business.

Capital Markets

China Securities Regulatory Commission, Business Guidelines on Applications by H Share Companies for Full Tradability of Unlisted Domestic Shares

Subject to compliance with relevant laws and regulations and the requirements of policies on the administration of state-owned assets, foreign investment and industry regulation, a holder of unlisted domestic shares may hold consultations at its own discretion to determine the quantity and percentage of its shares the tradability of which it is applying for and shall entrust the H share company to submit a "Full Tradability" application on its behalf.

Further reading

China Securities Regulatory Commission, Measures for the Administration of Futures Exchanges (Draft for Comments)

In order to implement the requirements of the Principles for Financial Market Infrastructure the draft suggests the addition of provisions on the position of the qualified central counterparties of futures exchanges, the requirement that the board of governors establish a risk management committee, net settlement as well as the finality of settlement. Also, foreign futures exchanges and foreign settlement institutions that engage in business in China are required to comply with relevant state provisions.

Further reading

Insurance

China Banking and Insurance Regulatory Commission, Measures for the Administration of Health Insurance

When an insurance company sells health insurance products, it may not forcibly tie the sale of other products therewith.

An insurance company may not set heredity information, other than the heritable disease history of the insured's family, or genetic testing information as underwriting conditions.

See the digest for more details.

Further reading

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