China to impose 3 pct VAT on asset management -- Asset managers will be levied with a new 3 percent value-added tax (VAT) for returns on assets under management from January 1, 2018, instead of the previously noticed 6 percent rate from July 1, 2017.The delay was jointly announced by China's Finance Ministry and State Administration of Taxation on June 30, following complaints from the asset management industry, reiterating that asset managers should bear the burden to pay the tax. China has stepped up the implementation of VAT, replacing the business tax, as the country’s only indirect tax since 2012, which was hailed as the most significant tax reform in over two decades. (Source: CNTV)
China mulls further streamlining foreign firms M&A procedures -- China will roll out revised guidelines to streamline procedures for foreign firms' merger and acquisition (M&A) activities in the near future, the Ministry of Commerce (MOC) said on June 29. China issued a revised foreign investment catalogue on June 28, which includes the negative list as well as sectors and industries in which the government wants to encourage foreign investment. The new catalogue has reduced the requirement to obtain official approvals in M&A activities, which means more foreign firms can be established or change status directly via registration.
China issues guidelines to promote sharing economy -- China issued guidelines on the sharing economy on July 3. The government will encourage innovation in sharing while regulating the sector in a tolerant and prudent manner, according to the National Development and Reform Commission and other seven government departments. More sophisticated regulations will govern different sharing sectors, reduce barriers to market entry and guard against risk. There will be well-defined rights and responsibilities for stakeholders and third-party platforms will address consumer complaints.
China's securities regulator hands out more fines in H1 -- In the first half of 2017, the China Securities Regulatory Commission (CSRC) has given fines totaling 6.36 billion yuan (about 938.8 million U.S. dollars), up 149 percent year on year, the CSRC said on its website. A total of 30 people were suspended from securities businesses in the first half, almost on par with the number of the whole year of 2016, the regulator said. During the period, the CSRC has dealt with 24 cases of violations in information disclosure, 24 cases of insider trading, and 14 cases of market manipulation.
China greenlights launch of cotton yarn futures -- China's securities regulator has recently approved the launch of cotton yarn futures on the Zhengzhou Commodity Exchange, according to an official statement. The cotton yarn futures, together with the cotton futures that already traded, will help companies in the industry to hedge against and improve the management of risks, the China Securities Regulatory Commission (CSRC) said. The date for the commencement of trading will be announced later, it said.
China to enhance macro prudential management to contain financial risk -- China will enhance macro prudential management to prioritize prevention and control of financial risk, according to the central bank. More efforts will be made to increase analysis and precaution of financial risk in fields including banks asset quality, capital markets, usage of insurance capital and illegal fund-raising, according to a report released by the People's Bank of China on July 4. Coordination among financial regulators will be improved to cover regulation of major financial institutions, infrastructure and business statistics.
China to boost use of natural gas -- China will accelerate the use of natural gas to combat pollution, China's top economic planner said on July 4. China will promote efficient, large-scale use of natural gas in sectors including industrial fuel, gas-fired power and transportation, according to the National Development and Reform Commission (NDRC). Natural gas consumption will be brought up to around 10 percent of the country's energy mix by 2020, according to the guideline.
China's State Council raises Hong Kong RQFII quota to 500 bln yuan -- The State Council, China's cabinet, has approved an increase in Hong Kong's Renminbi Qualified Foreign Institutional Investor (RQFII) quota, according to an official statement on July 4. The quota will be expanded to 500 billion yuan (about 73.65 billion U.S. dollars) from the current 270 billion yuan, according to a statement by the People's Bank of China.
China releases bike-sharing industry standards -- Shanghai and Tianjin have drafted regulations to take effect on Oct. 1, after taking advice from bicycle manufacturers and bike-sharers. Bike-sharing companies, including Mobike and Ofo, will adhere to standards on production, operation, and maintenance of shared bikes. The regulations specify a service life of three years for all such bikes and demand companies hire at least one maintenance employee for every 200 bikes. The rules also regulate management of deposits, handling of customer complaints and compensation for users.
China to create fair legal environment for domestic, foreign firms -- Chinese government will improve the legal environment to ensure domestic and foreign companies registered in China enjoy the same treatment, according to an official statement on July 5. To create a fair legal environment, China will make more regulations and policies that further stimulate market vitality, according to the statement following a State Council executive meeting presided over by Premier Li Keqiang. Government-involved investment funds will be guided to focus on public services, poverty relief and infrastructure projects, and to enhance support for the country's "Made in China 2025" plan. To get rid of unreasonable constraints for investors, the government will also continue to streamline administration, delegate power to lower levels and improve regulation and services.
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