Foreign insurers are currently permitted to provide services in 15 major Chinese cities; all geographical restrictions should be removed by the end of the year. Domestic insurers are now permitted to establish sales and distribution outlets in all locations where they have branches ...
The State Council issued the Decision of the State Council on the Reform of the Investment System on 17 July 2004. The Decision introduces a number of significant changes to the regulatory system applicable to investments in China. The key changes are set forth below. Approval and recordal system The Decision abolishes the government examination and approval system for domestic projects which do not require government investment ...
The State Administration for Industry and Commerce issued the Regulations for the Administration of the Registration of the Business Scope of Enterprises on 14 June 2004. The Regulations, which entered into effect on 1 July 2004, are applicable to enterprises registered inside China. Business scope The Regulations define the term ¡®business scope as the scope of the business activities in which an enterprise engages ...
The State Council promulgated the Regulations of the People's Republic of China on Road Transportation on 30 April 2004. The Regulations, which entered into effect on 1 July 2004, are applicable to the road transportation of goods, the road transportation of persons, the operation of road intervals, the repairing of motor vehicles, and the training of motor vehicle drivers. They are not, however, applicable to the urban transportation of persons by bus or taxi ...
The Central Government of the People’s Republic of China (“the Mainland”) and the Government of the Hong Kong Special Administrative Region (“Hong Kong”) reached a further understanding regarding the Closer Economic Partnership Arrangement between the Mainland and Hong Kong (“CEPA”) on 27 August 2004 ...
The Standing Committee of the 10th National People's Congress passed the Law of the People's Republic of China on Electronic Signatures on 28 August 2004. The Law, which was promulgated on 28 August by President Hu Jintao, will enter into effect on 1 April 2005 and provides a legal basis for electronic transactions. Electronic data text The Law applies to electronic signatures in electronic data text ...
The Ministry of Security and the Ministry of Foreign Affairs jointly promulgated the Measures for the Administration of the Examination and Approval of the Permanent Residence in China of Foreigners on 15 August 2004. The Regulations, which entered into effect on the date of promulgation, set forth the conditions upon which foreigners can obtain permanent residence in China. The Measures define permanent residence for foreigners as residence in China that is not subject to a time limit ...
The State Development and Reform Commission issued the Policies for the Automobile Industry on 21 May 2004. The Policies, which entered into force on 21 May, replace the Policies for the Automobile Industry issued in 1994. The Policies aim to restructure and strengthen the automobile industry in China and also provide guidelines for foreign investment in the industry ...
1. Overview of recent corporate governance reforms a. Recent initiatives There have been numerous recent changes in Hong Kong in relation to corporate governance matters, extending well beyond legislation and nonbinding codes. The roles of relevant regulators have also been examined and proposed changes made. As far as legislation is concerned, the most significant change is the introduction of the Securities and Futures Ordinance, which came into force on April 1 2003 ...
The State Administration of Taxation issued the Notice on Several Issues in the Implementation of Tax Agreements and the Individual Income Tax Law on Individuals With No Domicile in China on 23 July 2004. The Notice, which entered into effect on 1 July 2004, clarifies a number of issues related to the levy of PRC individual income tax ("IIT") on expatriate employees ...
The Ministry of Commerce (“MOFCOM”) issued the Measures for Registration for the Record of Foreign Trade Operators on 25 June 2004. The Measures, which entered into effect on 1 July 2004, are based on the revised Foreign Trade Law and specify registration rules applicable to operators of commodity or technology import-export business (“foreign trade operators”) ...
On 1 October 2004, two new sets of regulations became effective under PRC Law: • Regulations on Securities Investment Fund Management Companies (FMC Regulations); and • Regulations on Senior Management Personnel of Securities Investment Fund Management Companies (Senior Management Regulations). The China Securities Regulatory Commission (CSRC) also issued two related notices, one in respect of the application of each of the Regulations ...
Prior to 4 November 2004, a Hong Kong authorised scheme could invest up to 10% of its total net asset value in other collective investment schemes (CIS) under the Code on Unit Trusts and Mutual Funds (Code), but it could not invest in any type of real estate or interests in real estate (except shares in real estate companies) ...
Based on the statistics prepared by the Securities and Futures Commission (SFC), as of early November 2004, there are approximately 280 SFC authorised guaranteed funds. This number has continued to grow throughout 2004. Background The early guaranteed funds introduced to the Hong Kong market in late 1999 offered simple investment strategies securing a capital guarantee with a potential up-side linked to the performance of underlying assets ...
In order to reduce the risks imposed on investors and the market by the excessive re-pledging and imprudent lending of securities margin financing (SMF) providers, the Securities and Futures Commission (SFC) has issued a Consultation Paper on the Proposed Measures to Address Risks Arising from Securities Margin Financing ...
Disclosure of Interests Recently, the SFC has successfully prosecuted a number of breaches of the duty to disclose securities interests, among which the most widely reported in the news was that of the prosecution of Mr. William Mong Man-wai. Mr. Mong was charged with failure to declare his interest in nearly 3 million shares of Bank of East Asia in contravention of section 28(1)(b) of the Securities (Disclosure of Interests) Ordinance. Mr ...
Proposed guidelines have been formulated to prevent analysts’ trading activities or financial interests from prejudicing their investment research and recommendations. The guidelines are scheduled to come into effect on 1 April 2005 and are to form part of the Code of Conduct for Persons Licensed by or Registered with the SFC. The guidelines cover only shares, stock warrants or stock options listed in Hong Kong or investment research that has an influence on such securities ...
In this article, we have summarised several recent employment cases that address the issues of maternity protection, summary dismissal, notice of termination of employment, payable wages and vicarious liability. Some of these cases ascertain the established position of the law whilst others shed new lights on some areas of uncertainties. The case of Sun Min v. Hong Kong Ming Wah Shipping Co. Ltd ...
China has traditionally restricted foreign investment in the retail and wholesale sectors with the aim of nurturing strong domestic players before their foreign counterparts would be let into the country. However, in order to become a member of the World Trade Organisation, China has committed itself to gradually opening up its distribution sector to foreign investment ...
Year-end deadline for application to the HKMA to adopt the basic approach and internal rating based approach for credit risk calculation The Hong Kong Monetary Authority ("HKMA") issued a circular ("the Circular") to all Hong Kong incorporated authorised institutions ("AIs") on 7 December 2004, requesting formal applications from AIs that plan to adopt the internal rating based ("IRB") or the basic approach ("Basic Approach") for the assessment of their capital adequacy ...
Merger and acquisition activity has increased dramatically in China over the last several years. While such transactions were virtually unknown a mere ten years ago, they are now an increasingly common and important feature of China’s economic landscape. The M&A route now offers foreign investors a viable method of entering the China market. China’s economic reforms and robust growth have fuelled the increased pace of M&A activity ...
