Latest Hot Spot
Shanghai continues to expand financial import; foreign capital accelerates its influx into China's capital market
New Law Express
The Securities Regulatory Commission has promulgated the Administrative Measures on Information Disclosure of Public Securities Investment Funds and related supporting rules
The new regulations of online lending are promulgated; P2P will be fully integrated into the credit information system
The three supporting regulations of anti-monopoly law are formally implemented in September
Our Firm’s Trend
Shanghai Veritas Law Corporation was hired as legal consultant for a Singapore company's Hong Kong IPO project
【Latest Hot Spot】
Shanghai continues to expand financial import; foreign capital accelerates its influx into China's capital market
On September 18, Shanghai issued 'Several Opinions on Further Promoting Foreign Investment', which mentioned relaxing or abolishing the restriction on the proportion of foreign equity in financial institutions and further supporting the opening of Shanghai's financial market in policy. The issuance of this policy is also in line with the opening measures of financial industry announced by the Office of the Financial Stability and Development Commission of the State Council in July.
Zhong Xiaofeng, the CEO of Dongfang Huili Asset Management of Northern Asia, expressed his opinion at the 'China Annual Conference of 2019 on European Monetary Asset Management' held on July 17, that more and more foreign capital will enter into financial, service industries and domestic capital markets. Foreign capital attaches great importance to China's market, consumption potential and interests opportunities. Li Jun, deputy director of the Shanghai Financial Work Bureau, said that 2019 was a critical year for the establishment of Shanghai's international financial center. By next year, Shanghai will have basically established an international financial center, which will be in line with the international status and economic strength of Renminbi.
Following the announcement of eleven new financial openness measures, the previous project of financial openness that needs to be completed within three years is advanced to the next year. In the action plan for international financial center issued in January, Shanghai was required to establish 'six centers', one of which is the global assets management center.
Shanghai's advantages in financial openness, innovation and development provide an important basis for the development of the capital management industry in recent years. According to the data, 50 well-known international management organizations have settled in Shanghai in various ways, including the top 10 international management organizations in the global scale. Whether private securities or private equity investment institutions, the number of management companies and funds in Shanghai all rank among the top three. Yin Zhe, the CEO of Goffer Assets and co-founder of Noah Wealth, said that under the background of further expanding financial openness in Shanghai, more and more foreign top-quality assets management enterprises will enter the Chinese market. On one hand, assets management can further play its role in resource allocation and income distribution, and can further improve Chinese investment efficiency. On the other hand, it can also promote the training of domestic assets-management talents and the superior development of assets-management enterprises in China.
【New Law Express】
The Securities Regulatory Commission has promulgated the Administrative Measures on Information Disclosure of Public Securities Investment Funds and related supporting rules
Recently, in order to optimize the information disclosure system of public funds and effectively protect the legitimate rights and interests of investors, the CSRC issued the Administrative Measures on Information Disclosure of Public Securities Investment Funds and related supporting rules, which came into effect on September 1, 2019.
Pursuant to the requirements of relevant legislative procedures, CSRC solicited public opinions regarding the Administrative Measures and related supporting rules on the Official Website and the Chinese Government Legal Information Website in August 2018. During the period, fund managers, fund custodians, fund sales agencies, industry self-regulatory organizations and the public have given much attention. All parties agree with the basic ideas and main contents of this amendment. The relevant opinions were mainly centered on the interpretation or implementation of the provisions of the regulations. The CSRC has carefully sorted out its research results, adopted reasonable and feasible opinions and suggestions, and correspondingly polished the relevant expressions of the Administrative Measures and its supporting rules.
There are eight chapters and forty-two articles in the Administrative Measures. This amendment mainly contains the following subjects: The first thing is to optimize the designated information disclosure media system and simplify disclosure from newspaper and magazine. The second is to emphasize conciseness and accessibility, introduce the summary materials of fund products, and also improve the level of investors’ service. Third, we should strengthen the disclosure of key information, such as risk disclosure, and enhance the level of investors’ protection. Fourth, we should strengthen supervision during and after events and guide agencies to implement the compliance responsibility.
The new regulations of online lending are promulgated; P2P will be fully integrated into the credit information system
On September 2, in order to further establish and improve the credit information system and enhance policy influence, the Leading Group of Specific Regulation Project of Internet Financial Risk and the Leading Group of Specific Regulation Project of Online lending Risk issued the Notice on Strengthening the Construction of Credit Information System in the Field of P2P Online lending (hereinafter referred to as 'Notice'), which clearly supported the integration into credit information system of current P2P online lending agencies; continue to crack down on malicious debt evasion behavior of P2P online lending agencies that have withdrawn from operation; and increase the punishment against credit-breakers in the field of online lending.
'Notice' requires that the Leading Group of Specific Regulation Project of Internet Financial Risk and the Leading Group of Specific Regulation Project of Online lending Risk organize the currently operational P2P online lending agencies to integrate into operational authority of financial credit information basic database, Baihang Credit Information and other credit information authorities. The so-called operational authority of financial credit information basic database, is a credit information system that has been constructed, operated and maintained by the credit information center of the People's Bank of China.
In addition, the Notice stipulates that P2P online lending agencies should collect and submit relevant credit information in accordance with laws, and provide interest rates of online lending transactions to credit information authorities. When interest rate exceeds the requirements of relevant provisions, the information holder has the right to raise an objection and request the correction of interest rates to the credit information authorities or P2P online lending agencies pursuant to the Regulations on the Administration of Credit Information Industry.
The Notice calls for the greater punishment against those breaking credit in online lending and encourages banking institutions and insurance institutions to increase loan interest rates and property insurance premiums for those credit-breakers in P2P online lending in accordance with the principle of risk pricing, or to restrict providing loans, insurance and other services to those credit-breakers. At the same time, the Notice encourages the establishment of joint punishment mechanism across departments in accordance with the law, the enhancement of social punishment against dishonest behaviors, and finally the formation of a common governance mechanism where governmental departments collaborate with each other, self-discipline industry organizations administrate operation by themselves and the public exercise extensive supervision by media. Credit Information Authorities should provide support for joint punishment against credit-breakers in various local areas according to law.
Pursuant to the Notice, the Credit Information Authorities shall collect, sort out, preserve, process and provide credit information in accordance with laws, take reasonable measures to ensure the accuracy of the information and the security of the information system, establish a system to monitor abnormal queries and legitimate utilization. When the events of information insecurity occurs, the inquiry service should be suspended promptly.
The three supporting regulations of anti-monopoly law are formally implemented in September
On September 1, 2019, the Provisional Regulations on Prohibiting Monopoly Agreements, Provisional Regulations on Prohibiting Abuse of Market Dominance and Provisional Regulations on Suppressing Abuse of Administrative Power to Eliminate and Restrict Competition, which were all issued by the State Administration of Market Supervision, came into force formally.
The three regulations clarify the responsibility scope for the cases of the State Administration of Market Supervision and the Provincial Market Supervision Department. Chinese anti-monopoly enforcement functions and relevant powers and responsibilities, law enforcement operating procedures, law enforcement standards have thus been integrated and unified. In addition, the three regulations have unified the regulations in the ways to discover illegal acts, the requirements for written reporting, entrusted investigation, assistance in investigation, publicity and so on.
The promulgation of the three supporting regulations of the anti-monopoly laws has clarifies the identification basis and punishment standards for monopolistic acts, and authorizes anti-monopoly law enforcement agencies complete powers to investigate, collect evidence, punish and sanction illegal commissions. It makes the anti-monopoly law enforcement agencies more normative during enforcement process; law enforcement personnel can further improve their level of law enforcement in specific investigation and sanction process in order to effectively combat monopoly.
【Our Firm’s Trend】
Shanghai Veritas Law Corporation was hired as legal consultant for a Singapore company's Hong Kong IPO project
In September 2019, Shanghai Veritas Law Corporation was hired as a legal consultant for a Singapore company's Hong Kong IPO project. The partners of Shanghai Veritas Law Corporation, Lawyer He Lijuan and Lawyer Li Tianxin, have rich experience in the field of capital market. They will provide all-round and high-quality legal services for the Singapore company's Hong Kong IPO project.
Shanghai Veritas Law Corporation is committed to closely following the pulse of the clients development of Chinese capital market. In the process of practicing, we always aim to maximize the rights and interests of our clients. Based on a deep understanding of clients business needs and project background, we are committed to providing clients with constructive, feasible and comprehensive solutions.
About Veritas
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This article is only for the purpose of sharing information. Nothing in this article constitutes any legal opinions or suggestions of Shanghai Veritas. If you want more information, please check our website 'www.shveritas.com' or our Wechat Public Number 'Shanghai Veritas Law Corporation'.
