Hong Sun (CN)

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On 27 April 2018, various financial regulators in China promulgated new measures further opening up the financial services industry to foreign investment, regulating non-financial entities to invest into financial institutions and tightening up control over the conduct of asset management business by financial institutions. Our new briefing note summarises the key points in each of these new measures.  …
On 10 March, 2017, the China Banking Regulatory Commission (CBRC) issued the Circular of the General Office of CBRC on Matters Concerning the Operation of Certain Businesses by Foreign-invested Banks (the Circular) which took immediate effect. The Circular removed certain restrictions and clarified uncertainties concerning the business operation of foreign-invested banks (FI Banks, which include foreign-invested legal entity banks and onshore branches of foreign banks) in China and presented promising business opportunities to FI Banks.…
The People’s Bank of China has issued amended measures on the reporting of large-sum and suspicious transactions. The amended measures will take effect on 1 July 2017. The amended measures substantially revise the existing regime and impose greater obligations on financial institutions in the reporting of large-sum and suspicious transactions. Under the amended measures, financial institutions will not only need to comply with explicitly set out requirements, but shall also formulate their own transaction monitoring…
On 2 June 2015, the People’s Bank of China (PBOC) released the Interim Administrative Rules on Large Denomination Certificates of Deposit (in Chinese, 《大额存单管理暂行办法》) (the CD Rules), which came into effect on the same day. We summarize the key points of the CD Rules below. Qualified issuers Under the CD Rules, large denomination certificates of deposit (CDs) must be denominated in Renminbi and issued by banking institutions to investors who are not financial institutions. Such…
On 8 April 2015, the State Administration of Foreign Exchange (the SAFE) released the Notice on Reform of Administration over Conversion of Capital Funds of Foreign-invested Enterprises from Foreign Currency into Renminbi (the Notice), which will take effect from 1 June 2015. According to the Notice, the capital funds in the capital account of a foreign invested enterprise (the FIE), after being duly confirmed as paid-in capital in cash, can be directly converted into Renminbi…
On 31 March 2015, the State Council of People’s Republic of China formally released the Deposit Insurance Regulation (the Regulation), which will take effect from 1 May 2015. A draft of the Regulation was circulated on 30 November 2014 to solicit public comments and we prepared a briefing on such draft in December 2014. Compared with the draft, there is no material change made in the formal Regulation. The key points covered in the Regulation…
The 2008 financial crisis launched a debate on remuneration in the financial services industry which has been particularly acute within the banking sector. To help our clients navigate, understand and keep up to date with current developments, we have produced a comparative analysis on how regulatory requirements concerning remuneration in banks are being treated in 14 different jurisdictions around the world, covering Australia, Belgium, Canada, China, France, Germany, Hong Kong, Italy, Africa, South Africa, the…
SHANG Fulin, chairman of China Banking Regulatory Commission (CBRC), has recently spoken about new developments in the banking sector in a Q&A session with local journalists. According to SHANG, private companies will be encouraged to join the restructuring of “high-risk” city commercial banks, rural credit cooperatives and non-banking financial institutions. CBRC “is speeding up the issuance of guidelines on the development of private banks,” SHANG said. By the end of 2014, CBRC approved the…
On 3 September 2014, China Banking Regulatory Commission (CBRC) issued the Guidance Opinions on the Strengthening of Banking Industry’s Internet Security and Information Construction by the Use of Secure and Controllable Technology (the Guiding Opinions). The Guiding Opinions provides for certain generic requirements in terms of improving IT security in the banking sector. On 26 December 2014, CBRC issued the Guidelines for the Use of Secure and Controllable IT (2014-2015) (the Technology Procurement Rules). The…
In February 2015, the State Administration of Foreign Exchange (SAFE) released a circular to further simplify and improve foreign exchange control in the direct investment sector, which will take effect from 1 June 2015. By this, SAFE intends to better facilitate the cross-border flow of capital funds. Foreign investors who are interested in direct investment into China and Chinese investors who are interested in outbound investment should be aware of this new circular, which…