China
Legislative and Regulatory Amendments
- China Securities Regulatory Commission (CSRC)
Opinions on Promoting the High-Quality Development of the Futures Market
The CSRC announced that the State Council's General Office has forwarded a notice from the CSRC and other departments regarding strengthening regulation and risk prevention to promote high-quality development in the futures market.
Date of Release: 11 Oct 2024
Implementation on: As specified within the notice.
Applicable to: Futures Market
Launch of the Operation of the Swap Facility for Securities, Funds and Insurance Companies
The CSRC announced that the People's Bank of China has officially launched the Securities, Fund, and Insurance Company Swap Facility (SFISF) to facilitate smooth operations in the financial market. A joint notice issued on October 18 outlines the business processes, operational elements, and the rights and obligations of the trading parties involved.
Date of Release: 18 Oct 2024
Implementation on: 18 Oct 2024
Applicable to: Capital Market
Report on the Internal Control of Investment Banking Business of Securities Companies
The CSRC issued an update on the results of an inspection of internal controls and integrity practices in the investment banking operations of several securities firms, responding to strict regulatory requirements. It was noted that while most firms have improved their internal control systems, some still exhibit weaknesses, particularly in due diligence for bond underwriting projects. In response to identified issues, the CSRC has implemented measures such as administrative penalties and corrective actions for firms with serious violations, emphasising accountability for key personnel and a commitment to enhancing regulatory oversight in the investment banking sector.
Date of Release: 18 Oct 2024
Implementation on: 18 Oct 2024
Applicable to: Securities Companies
Order No. 3 of 2024 - Measures for Strategic Investment in Listed Companies by Foreign Investors
The CSRC announced the issuance of Order No. 3 of 2024, which outlines the management measures for strategic investment by foreign investors in listed companies. These measures aim to promote a high level of opening up, attract and utilise foreign investment more effectively, introduce foreign funds and management experience, improve the governance structure of listed companies, guide foreign investors to implement strategic investments in listed companies in an orderly manner, maintain the order of the securities market, and protect the legitimate rights and interests of listed companies and shareholders.
Date of Release: 1 Nov 2024
Implementation on: 2 Dec 2024
Applicable to: Capital Market
Issuance of Eight Financial Industry Standards
The CSRC issued eight new financial industry standards, including updates on industry classification codes for listed companies and technical specifications for regional equity markets. These standards aim to enhance the regulatory framework, improve data quality, and ensure the security of cross-chain operations in the financial sector. The CSRC plans to continue advancing the digitalisation and informatisation of the capital market by developing foundational standards and financial technology guidelines.
Date of Release: 22 November 2024
Implementation on: 22 November 2024
Applicable to: Capital Markets
Issuance of “Regulations on the Administration of Hong Kong Recognised Funds"
The CSRC issued the “Administrative Regulations for Recognised Hong Kong Funds” to further enhance the Mutual Recognition of Funds (MRF) arrangements between the Mainland and Hong Kong and improve the latter’s status as an international financial centre. These regulations aim to deepen the pragmatic cooperation between the capital markets of the two countries, better meet the cross-border wealth management needs of investors and promote the high-level institutional opening of the capital markets.
Date of Release: 20 December 2024
Implementation on: 1 January 2025
Applicable to: Mutual Funds
Measures for the Filing of Asset Appraisal Institutions Engaged in Securities Service Business
The Ministry of Finance and the CSRC issued a notice regarding the implementation of the revised filing measures for asset appraisal institutions engaging in securities services business. This revision aims to strengthen the supervision and management of asset appraisal institutions involved in securities services business.
Date of Release: 27 Dec 2024
Implementation on: 1 Jan 2025
Applicable to: Asset Appraisal Institutions
The CSRC announced the transitional arrangements for enterprises applying for their initial public offerings (IPOs) and listing on the Beijing Stock Exchange, as well as for listed companies and internal supervisory institutions of securities, fund, and futures firms, in relation to the new Company Law and Implementation Regulations.
Date of Release: 27 Dec 2024
Implementation on: As specified in the announcement.
Applicable to: Securities and Futures Firms, Funds, and others
The CSRC issued five financial industry standards namely, "Elements of Futures Brokerage Contracts", "Securities and Futures Industry Information System Backup Capability Specification", "Data Model for Securities and Futures Industry Part 5: Logical Model of Futures Companies", "Technical Specification for Distributed Digital Identity in Regional Equity Markets", and “Coding Specifications for Enterprises, Products and Investors in Regional Equity Markets” to bolster the informatisation and digitisation of the capital market.
Date of Release: 27 December 2024
Implementation on: 27 December 2024
Applicable to: Capital Markets
- National Financial Regulatory Administration (NFRA)
Issuance of Notice on Matters Related to Developing Commercial Insurance Annuities
The NFRA issued a notice to clarify the concept of commercial insurance annuities and put forward policy measures to promote its development. This notice was also issued to thoroughly implement the decision-making and deployment of the Central Financial Work Conference on doing a good job in pension finance and implement the requirements of the "Several Opinions of the State Council on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Insurance Industry".
Date of Release: 23 October 2024
Implementation on: 23 October 2024
Applicable to: Insurance Industry
Issuance of the Rules on the Non-performing Assets Business of Financial Asset Management Companies
The NFRA released measures in managing non-performing assets of Financial Asset Management Companies. These measures aim to standardise the whole process of handling non-performing assets, guide financial asset management companies to base themselves on their main responsibilities and main businesses, improve their professional capabilities in acquisition, management and disposal, and give full play to the functions of financial rescue and counter-cyclical adjustment.
Date of Release: 15 November 2024
Implementation on: 15 November 2024
Applicable to: Financial Asset Management Companies
Interim Measures for Risk Classification of Insurance Assets
The NFRA established the Interim Measures for Risk Classification of Insurance Assets and introduced a five-level classification guide for insurance asset risks. These measures aim to strengthen the overall risk management of insurance companies and truly reflect the quality of insurance assets, in accordance with the Insurance Law of the People's Republic of China.
Date of Release: 29 November 2024
Implementation on: 1 July 2025
Applicable to: Insurance Industry
The NFRA announced the issuance of a notice extending the transitional period for the implementation of the Insurance Company Solvency Supervision Rules (II) from the end of 2024 to the end of 2025. Insurance companies significantly impacted by the transition to the new rules can negotiate tailored transitional policies with the administration, which will assess each case individually.
Date of Release: 20 December 2024
Implementation on: Extended until the end of 2025
Applicable to: Insurance Industry
The NFRA issued the Notice on Matters Concerning the Convergence of Corporate Governance Supervision Provisions and the Company Law to implement the newly revised Company Law of the People's Republic of China, promote financial institutions to further optimise the corporate governance structure, and improve the quality and efficiency of corporate governance and financial supervision.
Date of Release: 25 December 2024
Implementation on: 25 December 2024
Applicable to: Financial Institutions
Measures for the Compliance Management of Financial Institutions
The NFRA announced the issuance of the regulations on compliance management for financial institutions to enhance the legal compliance of financial entities and promote a distinct Chinese financial culture. The regulations outline a comprehensive framework, including compliance management structure, responsibilities of key personnel, and necessary safeguards for compliance officers, emphasising the importance of effective communication and coordination within the compliance system.
Date of Release: 27 Dec 2024
Implementation on: 1 Mar 2025
Applicable to: Financial Institutions
Data Security Management Measures for Banking and Insurance Institutions
The NFRA announced the introduction of data security management measures for banking and insurance institutions to regulate data processing, ensuring data and financial security while protecting public interests. The measures establish a comprehensive framework that includes data classification, security governance, personal information protection, and risk monitoring.
Date of Release: 27 Dec 2024
Implementation on: 27 Dec 2024
Applicable to: Banks and Insurance Companies
- Shanghai Futures Exchange (SHFE)
MOU - SSE, Deutsche Boerse and CEINEX
The SSE, Deutsche Börse Group (DBG) and China Europe International Exchange (CEINEX) signed a memorandum of understanding on special cooperation on depository receipts under the stock connect. This is an important measure for the SSE to actively promote the high-level institutional two-way opening up of the capital market and to further deepen the cooperative relationship between the Chinese and German securities markets. It also marks that the cooperation in the development of products of depository receipts under the stock connect, information exchange and personnel exchange between the SSE and DBG has entered a new stage.
Date of Release: 6 Nov 2024
Implementation on: 6 Nov 2024
Applicable to: Capital Market
The SSE issued "Guidelines No. 6 of the Shanghai Stock Exchange on the Application of the Rules for Publicly Offered Infrastructure REITs—Annual Report (Trial)" and "Guidelines No. 7 of the Shanghai Stock Exchange on the Application of the Rules for Publicly Offered Infrastructure REITs—Interim Report and Quarterly Report (Trial)" to further improve the construction of the system of duration rules for infrastructure REITs with "assets management" as the core.
Date of Release: 29 November 2024
Implementation on: 29 November 2024
Applicable to: REITs
MOU between SSE and Qatar Stock Exchange
The SSE announced that it has singed Memorandum of Understanding (MOU) with the Qatar Stock Exchange (QSE) to further strengthen business cooperation and communications between their capital markets.
Date of Release: 16 Dec 2024
Implementation on: 16 Dec 2024
Applicable to: Capital Markets
Revised Guidelines for Special Corporate Bonds
The SSE revised and published the Guidelines for Review of Corporate Bond Issuance and Listing on Shanghai Stock Exchange No. 2—Special Corporate Bonds (2024 Revision). This revision is an important measure by the SSE to implement national strategies and support the real economy. It aims to better guide funds toward key areas of national strategic importance and effectively serve enterprises in industries such as sci-tech innovation and green development.
Date of Release: 27 December 2024
Implementation on: 27 December 2024
Applicable to: Bond Market
The SSE issued the Guidelines of Shanghai Stock Exchange for the Application of Rules for the Publicly Offered Infrastructure Real Estate Investment Trusts (REITs) No. 1 - Key Points of Review (for Trial Implementation) (2024 Revision). The Guidelines is a timely summary and refinement of the REITs review practices in the infrastructure sector. It aims to further improve the REIT rule system, enhance the standardisation, effectiveness, and relevance of REIT review and information disclosure, urge market participants to fulfill their responsibilities, effectively protect investors' legitimate rights and interests, and promote the regular issuance and high-quality development of the REIT market.
Date of Release: 27 December 2024
Implementation on: 27 December 2024
Applicable to: REITs
Consultations
- Shanghai Stock Exchange (SSE)
The SSE announced the formulation of the Three-Year Action Plan on Improving ESG Information Disclosure Quality of Listed Companies on the SSE (2024-2026) (hereinafter referred to as the Action Plan), which aims to effectively implement the requirements of Guidelines No.14 of SSE for Self-Regulation of Listed Companies—Sustainability Report (Trial) (hereinafter referred to as the Guidelines), promote listed companies to improve their ESG governance level through better disclosure and guide listed companies to better practice the concept of sustainable development. In order to continuously optimise the rule system of ESG information disclosure, the SSE also drafted the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Development Reports (Draft for Comment) and the Guide No.13 for Self-Regulatory Supervision on Listed Companies of the SSE STAR Market— Compilation of Sustainable Development Reports (Draft for Comment) (hereinafter referred to as the Guides) and solicits public opinions from the market.
Consultation Period: 6 Nov 2024 – 21 Nov 2024
Applicable to: Capital Markets
- National Financial Regulatory Administration (NFRA)
Consultation on the Decision on Amending Certain Rules
The NFRA publicly solicited feedback on the “Decision of the State Financial Supervision and Administration on Amending Some Regulations (Draft for Comments)” to implement the Company Law, which is conducive to the optimisation of the corporate governance structure and improve the efficiency of internal supervision.
Consultation Period: 25 December 2024 – 25 January 2025
Applicable to: Financial Institutions
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.