China
Legislative and Regulatory Amendments
- China Securities Regulatory Commission (CSRC)
CSRC introduced regulations to enhance oversight of former employees investing in potential public companies, extending prohibition periods and expanding supervision to include family members, aiming to uphold market fairness and integrity.
Date of Release: 06 September 2024
Implementation on: 08 October 2024
Applicable to: Former licensed individuals
Issuance of “Securities Issuer Information Disclosure Document Encoding Rules"
CSRC issued the "Securities Issuer Information Disclosure Document Encoding Rules" as a financial industry standard, which will come into effect from the date of publication. This standard outlines the basic principles, methods, units, and registration services for the encoding of securities issuer information disclosure documents, providing a practical coding scheme to lower industry information utilisation costs, enhance information connectivity and utilisation efficiency, and establish a solid foundation for a high-quality digital information disclosure system. The CSRC aims to further advance the informatisation and digitalisation of the capital market, focusing on standard development to bolster technological regulatory foundations.
Date of Release: 13 September 2024
Implementation on: 13 September 2024
Applicable to: Market Participants
The China Securities Regulatory Commission (CSRC) has revised and issued the "Provisions on the Calculation Standards of Risk Control Indicators for Securities Companies" to further enhance the risk control indicator system for securities companies, promoting comprehensive risk management and high-quality development, effective from January 1, 2025. The revision optimises risk control standards for stock investments and market-making operations, adjusts coefficient classification based on risk management levels, expands the scope of risk control indicators, and sets stringent standards for innovative and high-risk businesses to strengthen regulatory effectiveness.
Date of Release: 20 September 2024
Implementation on: 1 January 2025
Applicable to: Securities Companies
Mergers and acquisitions are important market tools to support economic transformation and upgrading and achieve high-quality development. The new "Nine National Policies" have made important arrangements for the active mergers and acquisitions market. To further stimulate the vitality of the mergers and acquisitions market, the China Securities Regulatory Commission, based on extensive research, has studied and formulated the " Opinions on Deepening the Reform of the Mergers and Acquisitions Market of Listed Companies ", adhered to the market-oriented direction, and better played the role of the capital market as the main channel in corporate mergers and acquisitions.
Date of Release: 24 September 2024
Implementation on: 24 September 2024
Applicable to: Listed companies
- Shanghai Stock Exchange (SSE)
The Shanghai Stock Exchange has updated the Detailed Implementation Rules for the Placing Tranche of Initial Public Offerings, effective from October 1, 2024, introducing a new requirement for investors participating in the STAR Market's offline offering business to maintain a market value of at least RMB 6 million.
Date of Release: 16 August 2024
Implementation on: 1 October 2025
Applicable to: STAR Market investors
SSE Releases Guidelines to Enhance Pertinence and Effectiveness of Bond Information Disclosure
The Shanghai Stock Exchange issued guidelines to streamline information disclosure for high-quality bond issuers, aiming to enhance the effectiveness and readability of disclosures while reducing burdens for reputable companies and maintaining stringent requirements for riskier entities.
Date of Release: 11 September 2024
Implementation on: 11 September 2024
Applicable to: Bond issuers
- Shanghai Futures Exchange (SHFE)
No legislative or regulatory amendments in Q3
Consultations
- China Securities Regulatory Commission (CSRC)
Consultation on "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management”
The China Securities Regulatory Commission (CSRC) has publicly solicited feedback on the "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management (Draft for Soliciting Opinions)," aiming to enhance listed companies' quality, operational efficiency, and profitability while prohibiting illegal actions under the guise of market value management.
Consultation Period: 24 September – 24 October 2024
Applicable to: Listed Companies
- National Financial Regulatory Administration (NFRA)
Consultation on the Interim Measures for the Supervision of Micro Credit Companies
National Financial Regulatory Administration has publicly solicited feedback on the "Interim Measures for the Supervision and Administration of Small Loan Companies (for consultation)" to regulate the behaviour of small loan companies, strengthen supervision, and promote their stable and healthy development.
Consultation Period: 23 August – 23 September
Applicable to: Financial Institutions
- Shanghai Stock Exchange (SSE)
Shanghai Stock Exchange Revises Rules on Reviewing Major Asset Restructurings by Listed Companies
The Shanghai Stock Exchange has revised rules for reviewing major asset restructurings by listed companies, focusing on simplifying the review process for specific types of transactions involving stock-for-stock mergers and high-quality companies acquiring assets, aiming to enhance efficiency and quality while reinforcing responsibilities of all involved parties to prevent misuse of the simplified review procedures.
Consultation Period: 24 September – 9 October
Applicable to: Listed Companies
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.