Legislation roundup: Mediation, coronavirus measures and securities companies

February 06, 2020 | BY

Susan Mok

Supreme People's Court may appoint mediation for disputes concerning local people, listed companies may postpone their disclosure of annual reports in view of the coronavirus epidemic and risk control on investments of securities companies is loosened.

Dispute Resolution

Supreme People's Court, Guiding Opinions on Further Improving the Appointed Mediation Mechanism

For disputes involving interests of people's livelihood, e.g. those involving property management, traffic accident compensation, protection of consumer rights and interests and medical injury compensation, the people's court may appoint a specially invited mediation organization or specially invited mediator to mediate the same, except if mediation is not appropriate for the same in accordance with the law.

The time period for such appointed mediation shall be 30 days.

Further reading

Company Law

People's Bank of China, Ministry of Finance, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and State Administration of Foreign Exchange, Circular on Further Strengthening Financial Support for Preventing and Controlling the Novel Coronavirus Pneumonia Epidemic

If a listed company affected by the epidemic cannot punctually disclose its performance forecast or financial preview, it may apply to the stock exchange for a postponement; or if it cannot disclose its 2019 annual report by the originally specified date, it may apply to the stock exchange for a postponement until April 30, 2020 at the latest.

Further reading

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Capital Markets

China Securities Regulatory Commission, Provisions for the Standards for Calculating the Risk Control Indicators of Securities Companies

Investment by securities companies in policy financial bonds, index funds, constituent stocks, etc. is suitably "loosened" so as to promote the attraction into the capital markets of long-term incremental funds.

The Provisions place focus on reining in high risk business, such as stock pledging, private asset management, private fund custody and agency sale services, while also further optimizing the calculation standards for high leverage and high concentration asset management products.

Further reading

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