Three minute round-up: the latest on China's financial markets regulation.

Global

China Financial Regulatory Round-up |

中国金融监管最新消息

Welcome to our China Financial Regulatory Round-up, a bilingual update on the latest
developments in China's financial markets. We hope you find this newsletter informative.

Kind Regards,
KWM Banking & Financial Markets Regulation Team

RMB 人民币

PBOC lowers entry thresholds for 央行降低外商投资支付机构准入标准

foreign-invested payment institutions
In order to promote a fully open market in 为推动形成支付服务市场全面开放新格局，
payment services, PBOC made an 央行发布外商投资支付机构有关事宜。
announcement relating to foreign-invested
payment institutions.
The announcement mainly covers: 公告内容主要包括：
1. the process for institutions invested by 1. 境外机构设立的外商投资企业取得支付
foreign entities to obtain licence in 业务许可证的过程。
order to engage in electronic payment 2. 外商投资支付机构应当在中华人民共和
services in the PRC; 国境内拥有安全、规范、能够独立完成
2. capability requirements for foreign- 支付业务处理的业务系统和灾备系统。
invested payment institutions including 3. 外商投资支付机构在中华人民共和国境
having independent onshore payment 内收集和产生的个人信息和金融信息的
settlement systems and crisis 信息安全要求。
management systems;
4. 外商投资支付机构的公司治理、日常运
3. data security requirements in relation 营、风险管理、资金处理、备付金交
to personal and financial information 存、应急安排等应当遵守中国人民银行
collected by foreign-invested payment 关于非银行支付机构的监管要求。
institutions; and
4. clarification that operations of foreign-
invested payment institutions including
corporate governance, day-to-day
operation, risk management, fund
processing, deposit of provisions,
 contingency arrangements must
comply with the regulatory
requirements of the PBOC for non-
banking payment institutions.

[Source: PBOC, 21 March 2018] [来源：人民银行，2018年3月21日]

China and Australia signs Bilateral Local 中澳两国央行续签双边本币互换协议

Currency Swap Agreement
The PBOC and the Reserve Bank of 近日，中国人民银行与澳大利亚储备银行续签
Australia have extended their bilateral local 了中澳（大利亚）双边本币互换协议，旨在便
currency swap agreement for a further three 利贸易和促进两国经济发展。协议规模仍为
years, with the option to further extend 2000亿元人民币/400亿澳大利亚元，协议有效
subject to mutual agreement. The main 期三年，经双方同意可以展期。
purpose of the agreement is to support trade
and economic development in Australia and
China. The agreement, like its predecessor,
allows for the exchange of local currencies
between the two central banks of up to A$40
billion or CNY 200 billion.
[Source: PBOC, 30 March 2018] [来源：人民银行，2018年3月30日]

Phase II of the China International 人民币跨境支付系统（二期）投产试运行

Payment Service goes into trial
operation
Phase II of the China International Payment 2018年3月26日，人民币跨境支付系统
Service (“CIPS”) successfully went into trial （CIPS）二期成功投产试运行。CIPS二期投产
operation on 26 March 2018. After Phase II is 后，CIPS运营机构提供24小时对外服务，服务
implemented, CIPS would have the capacity 时间覆盖欧洲、非洲、美洲等全球各时区工作
to provide 24-hour service to cover working 时间。
hours in all time zones including Europe,
Africa and the Americas.
Direct participants that went live with CIPS 3月26日，同步上线CIPS二期的直接参与者包
(Phase II) on March 26 included 10 Chinese 括10家中外资银行。
and foreign-funded banks.
[Source: PBOC, CIPS, 26 March 2018] [来源：人民银行，CIPS，2018年3月26日]

Bank Regulatory 银行监管

CBRC seeks public comments on 中国银监会就《银行业金融机构数据治理指

guidelines on data governance for 引》公开征求意见
banking institutions
In order to guide financial institutions in the 为引导银行业金融机构加强数据治理，充分发
banking industry to strengthen data 挥数据价值，银监会起草了《银行业金融机构
governance and utilise the value of data, 数据治理指引（征求意见稿）》（以下简称
CBRC has drafted the “Guidelines on Data 《指引》）。
Governance for Banking Institutions”
(“Guidelines”).
The Guidelines require banking institutions to 《指引》着重从以下五方面引领银行业金融机
govern data from five aspects: 构开展数据治理:
1. banking institutions should include 1. 要求银行业金融机构将数据治理纳入公
data governance as a part of their 司治理范畴，并将数据治理情况与公司
corporate governance and making 治理评价和监管评级挂钩。
data governance a part of regulatory 2. 明确鼓励银行业金融机构开展制度性探
evaluation of corporate governance 索，结合实际情况设置首席数据官。
and regulatory ratings;
3. 明确要求银行业金融机构建立良好数据
2. banking institutions are encouraged to 文化。
explore different structures and create
4. 要求银行业金融机构加强数据应用，发
the position of chief data officer as
挥数据价值。
appropriate;
5. 要求银行业金融机构适应大数据时代需
3. banking institutions should establish a
要，强化数据安全意识。
sound culture of data protection;
4. banking institutions should fully utilise
data; and
5. banking institutions should adapt to
business needs in the big data era and
enhance data security awareness.

[Source: CBRC, 16 March 2018] [来源：中国银监会，2018年3月16日]

CBRC issues notice to encourage high 银监会印发《中国银监会办公厅关于2018年

quality development of financial 推动银行业小微企业金融服务高质量发展的
services for small and micro businesses 通知》
in the banking industry
In order to alleviate the lack of supply of 为缓解小微企业金融服务供给不充分、结构不
credit to small and micro business, resolve 均衡的问题，推动银行业小微企业金融服务由
structural imbalances and redirect 高速增长转向高质量发展，银监会于近日印发
development focus in financial services for 了《中国银监会办公厅关于2018年推动银行业
small and micro businesses in the banking 小微企业金融服务高质量发展的通知》（以下
industry from quantity to quality, CBRC has 简称《通知》）。
issued the “CBRC General Office’s Notice on
Encouraging High Quality Development of
Financial Services for Small and Micro
Businesses in the Banking Industry in 2018”
(“Notice”).
Since the CBRC set the three minimum 银监会2015年初提出小微企业贷款增速、户数
targets in relation to the rate of increase, 和申贷获得率“三个不低于”目标以来，督促银行
number of accounts and application success 业连续三年达标。
rate of loans to small and micro businesses
(“Three Minimum Targets”) in 2015, the
CBRC has overseen the banking industry
achieve these targets for three consecutive
years.
In order to further focus on weak points in the 为进一步引导银行业聚焦薄弱环节、下沉服务
banking industry and emphasis on services 重心，《通知》在继续监测“三个不低于”、确保
for lower-end customers, the Notice will 小微企业信贷总量稳步扩大的基础上，重点针
continue to monitor the Three Minimum 对单户授信1000万元以下（含）的小微企业贷
Targets and set new “Two Increases and 款，提出“两增两控”的新目标，“两增”即单户授
Two Controls” targets in relation to loan 信总额1000万元以下（含）小微企业贷款同比
facilities made available to small and micro 增速不低于各项贷款同比增速，贷款户数不低
businesses of less than CNY 10 million 于上年同期水平，“两控”即合理控制小微企业贷
(inclusive). 款资产质量水平和贷款综合成本；突出对小微
企业贷款量质并重、可持续增长的监管导向。
The “Two Increases” requires that the rate of
increase in loan facilities made available to
any single small and micro business of less
than CNY 10 million should be greater than
the rate of increase of other loans and that
the number of loan accounts should be
greater than the level in the same period in
the previous year.
The “Two Controls” refers to controlling the
asset quality of small and micro business
borrowers and controlling the comprehensive
costs of the relevant loans. The new targets
focus on facilitating sustainable growth of the
quantity and quality of loans to small and
micro businesses.
[Source: CBRC, 9 March 2018] [来源：中国银监会，2018年3月9日]

Securities Offering 证券发行

CSRC commences pilot program of 证监会开展创新企业境内发行股票或存托凭

domestic issuance of shares or 证试点
depository receipts by innovative
companies
Following State Council’s approval, the 日前，经国务院同意，国务院办公厅转发证监
General Office of the State Council has 会《关于开展创新企业境内发行股票或存托凭
published CSRC’s “Several Opinions on the 证试点的若干意见》（以下简称《若干意
Pilot Program of Domestic Issuance of 见》）。
Shares or Depository Receipts by Innovative
Companies” (“Opinions”).
The Opinions mainly cover the following 试点的主要内容包括：
points:
1. target entities and selection 1. 试点对象及选取机制。试点主要针对少
mechanism: the pilot program mainly 数符合国家战略、具有核心竞争力、市
aims at a few innovative companies 场认可度高，属于互联网、大数据、云
which conform to national 计算、人工智能、软件和集成电路、高
development strategy, possess core 端装备制造、生物医药等高新技术产业
competitiveness, have high market 和战略性新兴产业，达到相当规模的创
recognition, be in high tech industries 新企业。
or strategic new industries such as 2. 试点企业的发行条件和审核机制。根据
internet, big data, cloud computing, 本次试点方案，允许试点红筹企业按程
 artificial intelligence, software, 序在境内资本市场发行存托凭证上市；
integrated circuit, high-end equipment 具备股票发行上市条件的试点红筹企业
manufacturing and biomedicine and 也可申请在境内发行股票上市；境内注
have achieved relatively large scale; 册的试点企业可申请在境内发行股票上
2. criteria and review mechanism for 市。
issuance by pilot companies: in 3. 试点企业的信息披露和日常监管。试点
accordance with this pilot program, 企业在境内发行股票或者存托凭证，相
pilot red-chip companies will be allowed 关发行、上市和交易等行为，均纳入现
to list in the domestic capital market by 行证券法规范范围。证监会依据证券法
way of issuing depository receipts; pilot 和《若干意见》及相关规定实施监管。
red-chip companies which satisfy the 4. 试点的投资者保护要求。试点企业发行
requirements of offering and listing of 股票的，按照境内现行股票发行的投资
shares could apply for listing 者保护制度执行。尚未盈利试点企业的
domestically by issuing shares; and 控股股东、实际控制人和董事、高级管
domestically registered pilot companies 理人员在企业实现盈利前不得减持上市
could apply for listing domestically by 前持有的股票。
issuing shares;
3. information disclosure and day-to-
day supervision of pilot
companies: in case the pilot
companies issue shares or depository
receipts domestically, the conduct of
relevant issuance, listing and
transactions will all be subject to the
existing Securities Law and the CSRC’s
supervision thereunder, the Opinions
and other relevant regulations; and
4. investor protection requirements:
where shares are issued by pilot
companies, the current domestic
investor protection regime in relation to
share issuance will apply. For pilot
companies that have not yet made
profits, their controlling shareholders,
actual controllers, members of the
Board and senior management will be
prohibited from reducing their shares
originally held before the listing.

[Source: CSRC, 30 March 2018] [来源：中国证监会，2018年3月30日]

CSRC seeks public comments on 监会就《证券公司股权管理规定》公开征求

securities company shareholdings rules 意见
In order to strengthen supervision of the 为加强证券公司股权监管，规范证券公司股东
shareholding of securities companies and 行为，证监会起草《证券公司股权管理规定》
further regulate conducts of shareholders of （以下简称《规定》），向社会公开征求意
securities companies, CSRC has drafted 见。
Provisions on the Administration of Equities
of Securities Companies (“Provisions”) and
 is seeking public comments thereon.
The Provisions clarify the following regulatory 《规定》主要明确了证券公司股权管理的以下
arrangements: 基本制度安排：
1. further facilitating category-based 1. 进一步分类管理，引导引进优质股东。
supervision and introducing high- 2. 强化穿透核查，厘清股东背景及资金来
quality shareholders; 源。
2. strengthening verifications to 3. 外部监管和内部管理相结合，事前把关
understand the background of 和事后追责相结合，对证券公司股权实
shareholders and their sources of 现全方位、全过程监管。
funds; and
3. consolidating external supervision and
internal management as well as ex-
ante gatekeeping and ex-post liability
investigations to achieve
comprehensive supervision of the
shareholding of securities companies.

[Source: CSRC, 30 March 2018] [来源：中国证监会，2018年3月30日]

Christine Chen Minny Siu Kate Jackson-Maynes Vanessa Docherty

Partner Partner Partner Partner
Beijing Hong Kong Sydney London
Email Email Email Email

Robert Chen Richard Mazzochi Scott Farrell Rudolf Haas

Partner Partner Partner Partner
Shanghai Hong Kong Sydney Frankfurt
Email Email Email Email

MANAGE YOUR PREFERENCES | UPDATE YOUR CONTACT DETAILS | UNSUBSCRIBE

To view our firm’s Privacy Statement, please click here. To email the Privacy officer please click here, or you can contact the
Privacy Officer, at King & Wood Mallesons, Level 50, Bourke Place, 600 Bourke Street, Melbourne VIC 3000, Australia, or on +61
3 9643 4000.

Terms of use & legal notices | Privacy statement

© 2018 King & Wood Mallesons