Banking and Finance Laws

New Measures have simplified the regime for private funds in China and enhanced the CSRC's authority. But key issues are left unresolved and confusion over the tripartite regulatory system remains a problem

New Measures have simplified the regime for private funds in China and enhanced the CSRC's authority. But key issues are left unresolved and confusion over the tripartite regulatory system remains a problem

CBRC tightens control on trust companies.

Banks required to set up dedicated wealth management departments.

The Circular broadens the meaning of "special purpose vehicle" from having financing as its objective to investment and financing as its objectives.

More foreign-invested projects have been removed from the Shanghai FTZ negative list.

The Provisions allow multinational corporations to centrally manage the foreign exchange funds of their member enterprises.

SAFE has replaced outdated rules regarding offshore special purpose vehicles with a new Circular that expands funding sources, eases registration burdens and covers equity incentive plans. But the benefit to cross-border transactions depends on implementation, say Haiwen & Partners lawyers

A new cash-pooling system allows multinational corporations to centralise their foreign exchange funds and eases flow between their onshore and offshore accounts. But quantitative control remains and the full potential of the system is yet to be realised