Banking and Finance Laws

The China Securities Regulatory Commission (CSRC) has issued new regulations that will require China's securities companies to keep their capital provisions,…

Issued: June 6 2006Effective: July 1 2006Main contents: The Circular relaxes the foreign exchange control policies relating to overseas investment. clp…

National LegislationACCOUNTINGEnterprise Accounting Guidelines No.11 Share-based Payment企业会计准则第11号 - 股份支付L3100/06.02.15(11)Enterprise…

Issued: April 13 2006Effective: May 1 2006Main contents: The Circular consists of three parts:1. Abolition of Advance Examination and Approval of the Opening…

Issued: April 17 2006Effective: as of date of issueInterpreting authorities: People's Bank of China and China Banking Regulatory CommissionMain contents:…

Service-related foreign exchange payment procedures are simplified. Domestic entities and domestic individuals benefit from procedure simplification for contracts below US$5,000 and an increased foreign exchange purchase limits to US$20,000.

China is one step closer to the qualified domestic institutional investor (QDII) programme, allowing banks, fund management firms, insurers and securities institutions to convert Chinese clients' renminbi into foreign currency and invest it overseas.

The Implementing Opinion issued jointly by the State Administration for Industry and Commerce, the Ministry of Commerce, the General Administration of Customs adn teh State Administration of Foreign Exchange clarifies issues such as organizational structure, incorporation form, timing and documentary requirements pertaining to approval applications, registration and capital contribution of foreign-invested enterprises, reinvestment requirements as well as approvals and registration of amendment. In particular, it elaborates on the basic rules in Article 218 of the Company Law on the applicability of laws to foreign-invested companies, and establishes the position that Company Law should govern foreign direct investment in China unless pre-empted by FIE laws. The Opinion also produces a list of FIC classification, including 13 FIEs formed as limited liability companies and 10 as foreign-invested companies limited by shares. The respective roles of board of directors, the shareholders' meeting, and the articles of association in corporate governance of various FIE structures are delineated.

The Tentative Measures allow PRC institutions and residents to invest in foreign financial products through PRC commercial banks, thus broadening their investment channels.