V. The Ministry of Finance Issued Interpretation Number Five on Accounting Standards for Business Enterprises
Recently, the Ministry of Finance issued Interpretation Number Five on Accounting Standards for Business Enterprises, which provides interpretations on fives issues, including: business mergers, business launches, credit risk mitigation tools and related services, and how to process accounting step by step in cases where an enterprises invests equity in its subsidiary and ultimately loses its right of control through several transactions.
(From the website of the Ministry of Finance)
VI. The State Administration of Foreign Exchange Amended the Provisions on the Foreign Exchange Administration of Securities Investment in China by Qualified Foreign Institutional Investors
On December 14, 2012, the State Administration of Foreign Exchange officially published the revised Provisions on the Foreign Exchange Administration of Securities Investment in China by Qualified Foreign Institutional Investors (“Provisions”), which came into effect upon their announcement. According to the revised Provisions, the investment limit quota for sovereign wealth funds, the Central Bank, and the monetary authorities should be more than USD 1 billion or an equivalent amount. The revised Provisions first regulate that the qualified investors can, after the expiration of the principal’s lock-up period, remit the principal and proceeds in installments and batches. But, the monthly remittance amount of principal and proceeds shall be no more than twenty percent of the investor’s total assets inside China at the end of the previous year. In addition, according to the revised Provisions, the restriction on remittance for open-end funds is changed to a Chinese open-end fund, to which the capital can be remitted out of or into by the custodian weekly according to the net amount of the offset balance between input and redemption. But, the monthly amount of remittance of capital shall be no more than twenty percent of the investor’s total assets inside China in the end of the last year.
(From the website of the State Administration of Foreign Exchange)
VII. The Shanghai Stock Exchange and the Shenzhen Stock Exchange Issued a Set of Rules Supporting the Delisting System
On December 14, 2012, the Shanghai Stock Exchange (“SSE”) issued four sets of rules supporting the delisting system in order to implement the delisting support system and steadily promote the reform of the delisting system. These rules include the SSE Provisional Regulations on Stock Trading on Risk Alert Boards, which took effect on January 1, 2013, as well as the SSE Detailed Rules for the Business Delisting Arrangement Period, the SSE Provisional Regulations on Share Transfer on Delisted Share Transfer Systems, and the SSE Measures for Re-listing of Delisted Companies, all of which took effect upon their release. Additionally, the SSE also issued the revised SSE Trading Rules, which took effect on January 1, 2013.
On December 16, 2012, the Shenzhen Stock Exchange (“SZSE”) issued the SZSE Special Provisions on Detailed Rules for the Business Delisting Arrangement Period and SZSE Measures for Re-listing of Delisted Companies, both of which came into effect on their the date of release.
(From the websites of the Shanghai Stock Exchange and the Shenzhen Stock Exchange)
VIII. The General Administration of Press and Publication Issued the Draft Administrative Measures for Internet Publication and Other Draft Regulations for Public Opinion
Recently, the General Administration of Press and Publication and other relevant departments jointly amended the Interim Provisions on the Administration of Internet Publication and other regulations. Accordingly, the Draft Administrative Measures for Internet Publication, Draft Measures on Standardization of Administration of Press and Publication, and the Draft of Administrative Measures for the Establishment of Offices inside China by Foreign Press and Publication Institutes were released for public opinions. The public can submit their opinions and suggestions via the online system, email, or letter, and the deadline for feedback is December 21, 2012.
(From the website of the Office of Legislative Affairs of the State Council)
Quoted from DeBund Newsletter of January 2013
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