The People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) on May 7, 2020, jointly issued the Administrative Regulations on Funds Used by Foreign Institutional Investors for Domestic Securities...more
Further to the announcement by the State Administration of Foreign Exchange ("SAFE") in September 2019 of its plans to remove the investment quota limitations on two inbound investment schemes – the Qualified Foreign...more
After the China Banking and Insurance Regulatory Commission announced 12 measures to open up China’s banking and insurance industry in May, the Financial Stability and Development Committee under the State Council announced...more
On September 10, 2019, the State Administration of Foreign Exchange (SAFE) held a press conference in which it announced that it would be removing the investment quota limitations on two inbound investment schemes – the...more
The China Securities Regulatory Commission (CSRC) earlier this year invited public comments on a new consolidated regime under draft regulations (Draft Regulations) for Qualified Foreign Institutional Investors (QFIIs) and...more
On March 21, 2019, the Central Bank of Ireland (CBI) confirmed its approval of the use of Bond Connect for Irish-authorised UCITS and Alternative Investment Funds (AIFs). In addition, the CBI reiterated that Irish-authorised...more
With the success of the Shanghai-Hong Kong Stock Connect (“Shanghai Connect”) and Shenzhen-Hong Kong Stock Connect (“Shenzhen Connect”) (together, the “Stock Connects”) and the Bond Connect (together with the Stock Connects,...more
Following announcement of the proposed launch of a bond trading link between China and Hong Kong (Bond Connect) earlier this year, Bond Connect officially launched on July 3, 2017. Bond Connect allows foreign institutional...more
A new program providing fund managers with access to China’s principal bond market officially opened for business in May 2016. The program – known as the China Interbank Bond Market (CIBM) program – greatly simplifies the...more
On 6 May 2016, the China Securities Regulatory Commission ("CSRC") issued an FAQ on "Beneficial Ownership under QFII/RQFII Regime" to clarify the issue on beneficial ownership of securities held in accounts under Qualified...more
Faced with redemptions and currency outflows from the country, Chinese regulators have taken welcome steps to make it easier for fund managers and other institutional investors to invest in China. Fund managers, in...more
It has long been a well established exit route in developed markets for a private equity firm to sell its interest in a portfolio company to a listed company in exchange for shares in that listed company. Until recently, this...more
Capital gains tax (“CGT”) has been a key issue surrounding the investment by QFIIs and RQFIIs in the Mainland Chinese securities market. Mainland Chinese tax authorities have publicly decided to retrospectively collect CGT...more
After years of speculation that the Saudi Stock Exchange (Saudi Tadawul) may be opening up for direct investment by foreigners into listed entities in Saudi Arabia, the Capital Market Authority of Saudi Arabia (CMA) published...more
At a compliance seminar held last month, officials from the Asset Management Association of China (AMAC) and the State Administration of Taxation (SAT) informed industry executives that Chinese regulators are planning to...more
The eagerly anticipated Shanghai-Hong Kong Stock Connect (Stock Connect), or the so-called “through-train,” was launched on November 17, 2014, allowing foreign investors for the first time to directly buy and sell stocks...more
The Renminbi Qualified Foreign Institutional Investor (“RQFII”) pilot program allows non-PRC institutional investors from certain jurisdictions that have officially implemented the RQFII (the “Relevant Jurisdictions”) to deal...more
The QFII program, as a principal means for foreign investors to invest directly in China’s securities market, has undergone significant changes in the past year. Most recently, the State Administration of Foreign Exchange of...more