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.
CSRC allows funds to participate in short sale of securities, procedures for setting up insurance asset management plans are simplified and enterprise gifts are taxed.
The Shanghai and London stock exchanges’ connect program has finally launched; new rules have been introduced to limit speculative trading of stocks on China’s new technology and innovation board; and the CSRC has urged major brokerages in the China to help smaller operations in the country's non-banking financial sector.
A change in the legal environment of the personal data receiving country will trigger a new security assessment, the CSRC is to revise measures to achieve quality restructurings of listed companies and trademark registration fees are largely reduced.
Alibaba files for Hong Kong listing that could raise $20 billion; China's state planner will encourage more debt-to-equity swaps; insurers likely to be allowed to up investments in Chinese A-shares; and official proposes beefing up penalties for IP violations.
