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By Stanley Zhou and Andrew Fei King & Wood Mallesons’ Finance & Capital Markets group

The Chinese government has announced that it will ease or remove restrictions on foreign ownership of Chinese securities and futures firms, fund managers, commercial banks, financial asset managers, life insurers and certain other financial institutions.  Subject to certain transition periods, these changes will allow foreign investors to own a majority and eventually a 100% stake in many types of Chinese financial institutions.  The announcement therefore represents one of the most significant steps China has taken to further open up the financial sector in the world’s 2nd largest economy. 
Continue Reading China Eases Restrictions on Foreign Ownership of Chinese FIs

By King & Wood Mallesons

King & Wood Mallesons (KWM) has advised Hong Yang Group Company Limited (Hong Yang) as their US, HK and PRC counsels on its offering of US$250 million 7.875% guaranteed senior notes due 2020. It is the debut international bond offering by Hong Yang and also the first bond transaction in which one global law firm provides legal advice under US, HK and PRC laws. 
Continue Reading King & Wood Mallesons leads the way in high yield issuances in Hong Kong

By Xu Ping Iris Feng and Feng Yuan King & Wood Mallesons’ Mergers & Acquisitions Group

xu_pingOn April 9, 2015, the State Council officially promulgated the Decision on the Bank Card Clearing Agencies Access Management (《关于实施银行卡清算机构准入管理的决定》) (the“Decision”), which will come into effect on June 1, 2015.

As a response to a WTO ruling that China must open its bank card clearing market, the long awaited Decision announces the opening of market to both domestic and foreign players.  As a result, China UnionPay, the only domestic bank card clearing agency for decades, will usher competitors, including international card companies, banks, as well as domestic third party payment agencies, who will be able to operate RMB-denominated bank card clearing business in the People’s Republic of China (the “PRC” or “China”).
Continue Reading New Bank Card Clearing Rules Heralds a Post-UnionPay Era

By  Scott Farrell  King&Wood Mallesons’ Sydney Office

Scott Farrell On 18 November 2014, the Chinese government announced that the Bank of China would be the clearing bank for the Chinese currency, Renminbi (RMB), in Sydney. Having an RMB clearing bank in Sydney presents a tremendous opportunity for Australian businesses, whether they are involved in financial services or not. We set out what it means by answering a few simple questions.

Q: Was an RMB clearing bank required to make RMB payments in Australia?

A: No. Payments in RMB can already be made in Australia, either though the RMB denominated accounts held with banks, or through Australia’s RMB settlement system (see below). However, a local RMB clearing bank makes the use of RMB for payments easier, particularly for larger amounts.
Continue Reading What does a Sydney RMB clearing bank mean?

作者：金杜律师事务所金融组

2011年12月7日，商务部、中国银行业监督管理委员会、中国保险监督管理委员会颁布了《对外承包工程项目投标（议标）管理办法》(简称“投标管理办法”)。投标管理办法对之前适用的相关规定做出了较大的改动，对企业的要求更加明确和具体，同时也扩大了银行开展相关业务时的要求。当前，中资工程项目承包类企业在海外的业务日益壮大和发展，而在这一过程中中资银行提供的支持是极其重要的一环。因此，在业务开展中，企业和银行需要注意新的投标管理办法中的相关要求。投标管理办法将自2012年1月15日起施行。

投标管理办法提出的具体要求和对之前的规定作出调整的领域主要包括：Continue Reading 对外承包工程项目投标（议标）管理办法发布

By Li Jinnan, Partner, King & Wood’s Banking & Finance Group

In order to support outbound investment projects of domestic PRC entities, to meet the policy demands of domestic credit support, and to further facilitate trading and investing, the State Administration of Foreign Exchange ("SAFE") on July 30th, 2010 promulgated the Notice on the Administration of Overseas Security by Domestic Entities (the "Notice"), which came into effect as of the date of promulgation. This Notice relaxes the restrictions on financing of outbound projects.Continue Reading New SAFE Regulations Support Financing of Outbound Deals

On June 9, 2009, the State Administration for Foreign Exchange (“SAFE”) issued the Notice on Certain Issues Relating to Foreign Exchange Administration on Offshore Lending by Domestic Enterprises (the “Notice”) effective as of August 1, 2009, in an effort to deal with the difficulties faced by offshore Chinese-funded enterprises that have “gone abroad” in obtaining financing offshore and increasing working capital, to encourage more domestic enterprises with strong capital strength to “go abroad”, and to enhance the use of funds by domestic enterprises.
 

King & Wood’s Finance Group

 Continue Reading SAFE Circular to Improve Forex Administration on Offshore Lending

Duncan Hwang, Foreign Lawyer, King & Wood’s FDI Practice

class="MsoNormal" style="margin: 0cm 0cm 0pt">After the Qualified Domestic Institutional Investor scheme (QDII) was implemented in April of 2006 to help relieve pressure on the RMB by promoting capital outflows and Chinese companies in various industries in the private sector were encouraged to go abroad, China’s outbound investment totaled approximately $20 billion in 2007.

 Continue Reading New York: Current Trends Lead to Overseas Expansion