The CSRC simplifies information disclosure requirements for public funds and includes foreign futures exchanges in the regulation umbrella. Commercial banks may entrust equity management matters to third parties.
Once again, high-level trade officials from the U.S. and China are back together; China plans to regulate e-cigarettes and vaping over fears of an addiction epidemic; and 11 measures have been introduced to open up financial market access and to scrap foreign shareholding restrictions.
Security assessment of cloud computing services for critical information infrastructure is specified, delinquent internet information service providers and users will be blacklisted, and real property enterprises are restricted from issuing foreign debt.
Following on the success of the Stock Connect program, China and the U.K. are now planning a Bond Connect scheme; China eases immigration rules to attract more foreign talents; and Ping An’s Lufax platform is rumored to be quitting P2P lending.
Undisclosed information in securities trading is defined, the underlying assets of a pooled fund trust in which insurance capital may be invested are limited and off-campus online education is subject to record filing.
The CBIRC will tighten regulations on China’s cash management products; increased government oversight of Chinese schooling has hit the share price of several Hong Kong-listed tutoring companies; and China’s State Council plans to adopt more fiscal, and tax- and tariff-reduction measures to maintain stability in its international trade.
Thresholds on controlling shareholders of securities companies are lowered, critical information infrastructure may require the use of commercial cryptography and Shenzhen Free Trade Zone loosens restrictions on foreign investment in construction projects.
China has released a new negative list with fewer sectors off limits to foreign investment; Hong Kong’ regulators will now have access to Chinese companies’ audit records; and foreign ownership caps on Chinese financial firms will be lifted by 2020.
The national and FTZ negative lists are downsized relaxing foreign investment in business such as cinema operations, and the new Catalogue of Encouraged Foreign Investment in Industry supports foreign investment in high-end manufacturing.
In a landmark case, an ex-UBS banker was jailed for nine years for cross-border insider trading; the China-Japan ETF Connectivity scheme was launched with four index-tracking ETFs; and the CSRC is considering lifting profitability rules on listed company M&A activities.
