Legislation roundup: Bond markets, online loans and Shenzhen property
July 24, 2020 | BY
Susan MokThe interbank bond market and stock exchange bond market in China are integrated, online loans may not be used for securities trading and Shenzhen tightens property curbs again.
People's Bank of China and China Securities Regulatory Commission, Announcement [2020] No.7
Qualified investors on the interbank bond market and stock exchange bond market may buy and sell through the link between the relevant infrastructure institutions of the two markets bonds traded on the two markets.
A foreign-invested bank in China or another bank listed in China may participate in the trading of spot agreements on a stock exchange bond market either through the mutual access mechanism or by directly opening an account.
Further reading
Banking
China Banking and Insurance Regulatory Commission, Tentative Measures for the Administration of Online Loans by Commercial Banks
The credit limit on the personal credit loan of an individual used for consumption purposes shall not exceed Rmb200,000, and if the principal is to be repaid in one lump sum upon maturity, the credit term may not exceed one year.
The proceeds of a loan may not be used for the following:
(1) housing purchase or repayment of a housing mortgage loan;
(2) investment in stocks, bonds, futures, financial derivatives or asset management products; or
(3) fixed asset or equity investments.
Further reading
Real Property
Shenzhen City, Circular on Further Promoting the Stable and Healthy Development of the City's Real Property Market
A Shenzhen resident household or single adult person (including divorced persons) may purchase commercially developed housing only if it/he/she has been resident in Shenzhen for at least three years and can provide proof that it/he/she has paid individual income tax or social insurance in Shenzhen for at least 36 months in succession prior to the date of purchasing the housing.
Further reading
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