China: Capital Adequacy/BASEL

Chinese companies continue strategically deploying capital overseas.

China implemented the Administrative Measures on Beneficial Owner Information.

The long-awaited amended Company Law (New Company Law) was enacted on 29 December 2023, effective from 1 July 2024.

New rules indicate future directions of China's wealth management sector and the desire to regulate the banking market.

It's been slightly over a month since the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses. Thus far, it is not clear how many (if any at all) foreign-local deals have undergone the NSR process, Pursuant to the rules and regulations which govern the NSR process, there is no obligation on the part of the Chinese government to publish any determinations (whether deals are approved or not) in relation to deals which undergo the NSR process.

As a source of steady income, trust companies had been taking loans off the books of banks and repackaging them up as trust products. China Banking Regulatory Commission ("CBRC") became alarmed when the volumes grew too big and in early July, CBRC abruptly closed down the entire business by ordering trusts to halt all cooperation with banks.

On the 21st of January 2004, the People’s Bank of China published its draft Regulation on Administration of Auto Loans for consultation, which set out respective rules for auto loans granted to different kinds of debtors as well as for risk management