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Introduction:

This article examines the regulatory framework outlined in the “Regulations on the Supervision and Administration of Privately-Offered Investment Funds” in China. It provides an overview of the new regulations and their implications for privately-offered fund managers, custodians, and service agencies. Understanding and complying with these regulations is essential for stakeholders in the Chinese investment fund industry.Continue Reading Regulatory Framework for Privately-Offered Investment Funds in China: Implications and Compliance

On December 24, 2021, China Securities Regulatory Commission (“CSRC”) issued draft rules and measures on the direct and indirect offshore listings of onshore companies for public comments.  The deadline for submitting public comments is January 23, 2022.
Continue Reading China Securities Regulatory Commission Issued Proposed Rules on Offshore Listing

On December 17, 2021, the Stock Exchange of Hong Kong Limited (the Exchange) announced new listing regime for special purpose acquisition companies (SPAC).  These new rules will take effect on January 1, 2022.  This regulatory update reflects the Exchange’s commitment to remain an attractive, competitive and diversified capital-raising market in the region.
Continue Reading Hong Kong Stock Exchange Announced New Listing Regime for SPAC

The State Administration of Foreign Exchange (“SAFE”) issued a Notice on Foreign Exchange Administration Issues concerning Investment in the Interbank Bond Market by Foreign Institutional Investors (the “Notice”) on May 27, 2016, which further clarifies the supervision and administration of the investment in the interbank bond market by foreign institutional investors.
Continue Reading New Regulations on the Investment in the Interbank Bond Market by Foreign Institutional Investors

China plans to promote consumption and open up its bank card clearing market. This is the outcome of a State Council meeting chaired by Premier Li Keqiang on October 29, 2014. “All qualified domestic and overseas enterprises can file applications for setting up bank-card clearing institutions in China.” The State Council has not given any specifics on foreign investors’ qualification currently, but said that the country must improve management, prevent risks to safeguard the legitimate interests of card users.
Continue Reading China Bank Card Clearing Market — A Feast for Foreign Investors?

China Securities Regulatory Commission (the “CSRC”) issued a notice on May 9, 2014 to seek public comments for the Administrative Measures on the Acquisition of Unlisted Public Companies (Draft for Comment) (hereinafter referred to as the “Acquisition Measures“).
Continue Reading CSRC Issued New Drafts of Administrative Measures on Acquisition of Unlisted Public Companies for Public Comments

Domestic Chinese private equity managers should take notice of new provisional regulations requiring registration of domestic Chinese private equity managers and filings with the Asset Management Association of China (“AMAC”).  Also, Chinese private equity managers should take notice of an impending deadline to register with AMAC.
Continue Reading New Registration Requirements and Deadline for PRC Domestic PE Funds and Managers

On December 2, 2013, the People’s Bank of China (“PBOC”) has issued the Opinions on the Financial Support for the Building of the China (Shanghai) Pilot Free Trade Zone (the “Opinions”, in Chinese: 中国人民银行关于金融机构支持中国（上海）自由贸易试验区建设的意见).
Continue Reading PBOC Pledges Financial Support for China (Shanghai) Pilot Free Trade Zone

On August 20, 2013, the China State Council approved the application from the People’s Bank of China (Central Bank) to launch a new financial coordination mechanism led by the Central Bank to reinforce regulation in the financial sector, but without altering the existing functions of industry regulators.

The new system will be led by the central bank and will involve the chairmen of the CBRC (China Banking Regulatory Commission), CSRC (China Securities Regulatory Commission), CIRC (China Insurance Regulatory Commission) and SAFE (State Administration of Foreign Exchange). If necessary, the NDRC (National Development and Reform Commission), the country’s top economic planner, and the MOFCOM (Ministry of Finance and Commerce) will also be invited to take part in the meetings.Continue Reading China State Council launched new financial coordination mechanism

The long fight between China’s regulatory agencies for the private equity (PE) and venture capital (VC) industry has finally been concluded. By a notice on Division of Duties in Private Equity Fund Administration promulgated by the State Commission Office for Public Sector Reform (“SCOPSR”) on June 27, 2013 (“Notice”), the China Securities Regulatory Commission (“CSRC”) is designated as the sole regulator of China’s PE and VC industry.
Continue Reading CSRC Became Sole Regulator of PE Industry

In a number of incremental steps, the PRC government has been easing restrictions on the cross-border movement of RMB. The latest step for the private equity industry is the Renminbi Qualified Foreign Limited Partner Program (“RQFLP”), which permits offshore-raised RMB to be invested in PRC companies by PRC private equity funds and managers.
Continue Reading Renminbi Qualified Foreign Limited Partner: an incremental step toward RMB internationalization in the private equity industry