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By Zhang Dongcheng and Li Shi King & Wood Mallesons’ Security Group

On June 28, 2013, the China Securities Regulatory Commission (CSRC) convened a press conference to promulgate the new amendments to the Administration of the Client Asset Management Business of Securities Companies Measures (“Administrative Measures”) and the Implementing Regulations of the Aggregate Asset Management Business of Securities Companies (“Implementing Regulations”). In order to implement the Law of Securities Investment Funds of the People’s Republic of China (2012 Amendment), which already formally went into effect on June 1, 2013, the revision of Administrative Measures and Implementing Regulations, mainly revolves around the regulations of “Large Aggregate” and “Small Aggregate”. Through new legislation, we can read CSRC’s attitude and path selection on the reform direction of the asset management business.
Continue Reading Client Asset Management Business Will Realize Effective Unified Regulation

By Miao Jing  King & Wood Mallesons’ Energy, Resources and Projects Group

The National Energy Administration (“NEA”) issued the Shale Gas Industry Policy (“Policy”) on October 22, 2013, which was made public on October 30, 2013. The Policy recommends certain reforms to encourage shale gas development in China. The key points are set out below.
Continue Reading NEA calls for reforms to encourage shale gas development

We once again remind the readers that copyright of all articles published on this blog are the intellectual property rights of King & Wood Mallesons, any copying and duplication without written consent of KWM is an infringement of our copyright. We noticed that some particular entities have been continuously using substantial amount of our articles…

By Miao Jing King & Wood Mallesons’ M&A Group

A recent State Council opinion[i] (the “Opinion”) offers detailed suggestions to policy-makers for encouraging the development of China’s coalbed methane (CBM) industry. Although the Opinion does not contain binding rules, it does list recommendations for future CBM policies and regulations and may provide valuable insights to CBM investors as to what may be coming.

Published by the Central Government on September 22, 2013, the Opinion covers a range of topics, from subsidies to coordination with coal mine operators.  Highlights of these topics are discussed below.
Continue Reading New State Council Opinion Encourages CBM Development

By King & Wood Mallesons’ Compliance  Team

Many of our clients have expressed concern about the legal liabilities faced by senior management of state owned enterprises (“SOE”). As defined by law, senior management of an SOE generally includes legal representatives, directors, supervisors, and other employees classified as senior management. As these employees have special status and responsibilities, they may in certain circumstances bear criminal, civil, administrative or economic liability for their own acts or those of the SOE.
Continue Reading Liabilities Faced by SOE Senior Management

By King & Wood Mallesons’ Compliance Group

On September 16th，CCTV reported that in order to achieve long-term profits, many milk companies had bribed doctors and nurses. This was done without the knowledge of parents so that hospitals would feed newborn babies with the companies’ milk powder to make the babies dependent on it. On September 17, in order to solve this problem, the National Health and Family Planning Commission circulated a notice forbidding medical institutions and their staff from marketing and promoting breast-milk substitutes. The notice states that the “Mothers and Infants Health Law of the People’s Republic of China” and its implementing regulations, “Rules on the Marketing of Breast-milk Substitute,” should be implemented strictly. To the extent that medical institutions and their staff market or promote breast-milk substitutes, they will be sternly punished according to the law.
Continue Reading “Notice Forbidding Medical Institutions and Their Staff from Marketing and Promoting Breast-milk Substitutes” Summary

By Harry Du and Thomas McGinn King & Wood Mallesons’ M&A Group

At the end of October 2013, the Standing Committee of China’s National People’s Congress (NPC) finalized the third draft of amendments to China’s Environmental Protection Law (《环境保护法修正案（草案）》).

In light of the extensive debate so far, many speculate that the Law will undergo a fourth draft before the New Environmental Protection Law enters into force[1]. Such changes would constitute the first amendment to the Law since it came into force in 1989.
Continue Reading Who Can Initiate Class-action Lawsuits under the Draft Environmental Protection Law?

By Susan Ning, Kate Peng and Chai Zhifeng

On August 27, 2013, MOFCOM announced its conditional clearance on MediaTek Inc’s (“MediaTek”) 4 billion USD acquisition of MStar Semiconductor Inc (“MStar“) (the “Transaction“). This is the second “hold-separate” case since this year (the other one is Xstrata/Glencore), and the forth one in China’s merger filing history. 1 MOFCOM appears to be getting more and more confident with the “hold-separate” arrangement as a behavior remedy to address competition concerns.  It is also worth to note that the parties are required to submit detailed operation plan within three months of the decision and the transaction can only be closed after the detailed operation plan is approved by MOFCOM.


Continue Reading Another “Hold-Separate” Decision of MOFCOM—MediaTek’s Acquisition of MStar is Cleared with Conditions

By Susan Ning, Kate Peng, Jia Liu and Rui Li    King & Wood Mallesons’ Antitrust & Competition Group

After more than ten years of deliberation and discussion, Anti-monopoly Law of China (AML) finally came into effect on August 1, 2008. This is not only a periodic achievement in the development of Chinese legal system but also a milestone event since the establishment of Chinese market economy. AML contains eight chapters and fifty-seven articles and sets up a brand new mechanism against economic and administrative monopoly with both domestic and international reaches and private and public enforcement. Public enforcement refers to administrative investigation and enforcement activities initiated by anti-monopoly agencies duly authorized by the nation. Private action refers to anti-monopoly civil action filed at the court by the legal or natural person injured by the anticompetitive conducts. In the past five years, the public and private enforcement have worked in tandem to promote the enforcement of AML. The two enforcement methods complement each other to prevent the anticompetitive conducts violating AML, protect fair market competition, enhance market efficiency, and safeguard consumers’ interest and the public interest.   
Continue Reading The Dual System of Anti-monopoly Law – The Interplay between Administrative Enforcement and Civil Action