Capital Markets

Groundbreaking algorithm recommendation regulation finalized; CSRC pilots market makers for STAR Market; and copyright administration prohibits digital music exclusive copyright arrangements

CBIRC allows involvement of insurance capital in securities lending

Manufacturing and service industries further opens up to foreign investment but loophole allowing foreign investment in restricted sectors is plugged; food producers warn of major disruptions as all foodstuffs now subject to import regulation; and trial macroprudential policy guidelines provide key definitions and high-level guidance for managing systemic financial risks

Guo Yongmao of Haiwen & Partners discusses the various types of taxes under the PRC tax regime that new companies must consider when setting up a business in mainland China and highlights how tax impacts investors of a PRC company if they are foreign entities when considering dividends distribution, interest payment and transfer pricing

CSRC permits Chinese companies to list overseas with VIE structure after filing; SEC updates disclosure guidance for China-based companies to highlight VIE risks; and Xinjiang forced labor ban signed into law

More details are required for working papers of securities sponsorship

PCAOB accuses PRC authorities of not allowing inspection and investigations of audits; E-commerce live streamer "Viya" fined USD$210 million for tax evasion and social media accounts suspended; and credit card regulation on the horizon

OFAC prohibits U.S. investments in AI company SenseTime, Hong Kong listing postponed; CBIRC to remove foreign ownership cap for insurance asset management firms; MIIT orders removal of 106 apps over data violations

Insurance capital may invest in REITs.