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CIL观点 《CIL观点》历史存档与订阅 CIL Newsletter | February,2010 | English Version
CIL观点 《CIL观点》历史存档与订阅 CIL Newsletter | February,2010 | English Version
CIL Newsletter | February,2010 | English Version
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---- Chinese regulator permits margin trading and short selling China’s securities regulator, the China Securities Regulatory Commission (CSRC), has launched a pilot program for a limited number of securities firms to undertake margin trading and short selling operations. The new rules are contained in the Guidelines on Carrying Out Margin Trading and Short Selling Business of Securities Companies on a Trial Basis (2010 Guideline) issued by the CSRC on 22 January 2010. ——High entry threshold *Have net assets of at least RMB 5 billion (approx US$720 million) over the previous six months. *Be rated as A-class *Have a relatively high proportion of self-owned funds in their net capitals and a certain level of self-owned securities *Have a trading and settlement system in place which meets the requirements for trading and settlement with the stock exchanges and the CSDCC. *Have passed the professional assessment by the China Securities Association (CSA). *A securities firm may submit its application to CSRC for approval. CSRC is expected to select six or seven securities firms for the pilot program, and qualified securities firms will be required to select their clients for margin trading and short selling business carefully based on a review of the relevant client’s financial status, trading experience and risk preference. Qualified clients must have opened the securities accounts with their securities brokers for more than 18 months, with the value of total assets in their securities accounts of above RMB 500,000 (approx US$72,500) and total financial assets above RMB 1 million (approx US$145,000). ——Other rules applicable to margin trading and short selling business *Contract and Risk Disclosure *Margin: the investors must deposit cash and/or securities in the margin account with the qualified securities firms. The value in the margin account must not be less than 50% of the initial funds and/or securities borrowed by the investors and investors will be subject to the margin calls to be made by the securities firms. *Settlement of the securities is through the system of CSDCC and separate credit accounts/margin accounts must be opened by the securities firms for trading of the borrowed securities. If you need know more, please contact CIL for more information.
 ----Rules on Registration of Foreign Invested Partnerships Released On February 2nd, 2010, PRC State Administration for Industry and Commerce (.SAIC.) released the Provisions on the Administration of the Registration of Foreign Invested Partnership Enterprises. ——Market Entry Policies FIPs engaging in the following industries are prohibited to be registered: *ndustries where foreign investment is prohibited by the Catalogue for the Guidance of Foreign Investment Industries. *Industries where foreign investment is not prohibited but is restricted by additional requirements such as equity and/or cooperative joint venture only, controlling stakes or relative controlling stakes to be held by the Chinese investor, or limit on shareholding ratio of foreign investor. ——Registration Procedures *FIPs engaging in sectors that are encouraged or permitted for foreign investment can be directly registered with the local SAIC offices at the place where the FIPs are located. *If a prior approval from the authority in charge of the business activities or projects to be engaged in by an FIP is required by applicable PRC law, such prior approval should be obtained before the FIP is registered with the competent SAIC office. *If an FIP is proposed to be engaged in a business sector that is restricted for foreign investment but no prior government approval is required, the relevant SAIC office should firstly consult with the authority in charge of such business sector with respect to the establishment and registration of the FIP. *FIPs will be subject to administrative penalties if they engage in business activities that are restricted or prohibited for foreign investment without registration with the competent SAIC office in advance. ——Capital Contribution. The Provisions do not make any specific requirement on the minimum amount of registered capital and the term of capital contribution for the establishment of an FIP, which is quite different from those for FIEs. As to the forms of capital contribution to an FIP, in addition to foreign currency and lawfully obtained RMB cash, in-kind contributions are also permitted. It is noteworthy that for FIPs general partners that are foreign citizens, personal services are also permitted as a form of contribution, subject to the rules issued by national-level authorities with respect to foreign employees in China. ——Investment FIPs FIPs with investment as their principal business (the Investment FIPs.) should register their establishment with the SAIC offices at provincial level. Any domestic investment made by such FIPs should be handled pursuant to applicable laws, regulations and rules applicable to foreign investment. If you need know more, please contact CIL for more information.
----State Council Issues New Measures to Encourage Foreign Investments The State Council has recently publicly declared to put forward new measures to boost foreign investment. In an effort to attract more foreign investment into China, the State Council will further relax restrictions on foreign investment. ——The Catalogue for Guidance of Foreign Investment Industries *It will undergo another round of amendments to lift certain existing restrictions on foreign investment. Foreign investors are encouraged to invest in sectors of high-end manufacture, hi-tech, modern service, new energy, and energy conservation and environment protection. *Measures contained in the nationwide industrial adjustment and revitalization plans are also applicable to qualified FIEs. *Foreign investors are encouraged to invest in labor intensive industries in central and western China in line with relevant environment protection requirements. FIEs will enjoy more governmental supports in terms of investment policies, technologies and funds. *Foreign investors are encouraged to participate in the restructuring and reorganization of domestic companies by way of M&A. ——Faster Schedule *The experimental operation of foreign invested guarantee company for medium and small sized enterprises will follow a faster schedule. *The number of government approvals related to FIEs will be further reduced and the transparency of approval process will be improved. *The development of various industrial development zones will be further streamlined and strengthened, and the establishment of border economic cooperative zones will be expedited. The forward settlement procedures of capital contributed by foreign investors will be simplified. ——Land Supply Priority to land supply will be given to foreign invested projects of intensive land utilization in the encouraged industries. If you need know more, please contact CIL for more information. For details, please visit CIL's Web,or call :400-880-8123 For further information.
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CHINA INCORPORATIONS LIMITED |
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