China Securities Regulatory Commission

Enforcement

Chinese Police Detain Fugitive Hedge Fund Manager

By Editors | 31/08/2018

The chairman of Shanghai Fuxing Group fled the country in June amid allegations of market manipulation, after defaulting on bank loans and $2.6bn in investor payouts.

Securities / Derivatives

CSRC Outlines Rules for Foreign-Invested Futures Firms

By Garima Chitkara | 28/08/2018

Securities regulator set out requirements for firm shareholders, senior management and application documents. Foreign-funded futures firms must hold all core consumer data and transaction data servers on the mainland.

Fintech / Regtech

Baidu’s Fintech Arm Receives Fund Distribution Licence

By Garima Chitkara | 28/08/2018

A unit of Du Xiaoman, a Baidu subsidiary, received a fund distribution licence from the CSRC and will have six months to complete preparatory work. It will also need to apply for a securities and futures license.

AML / KYC

HKEX Unveils Details of New Northbound Investor ID Regime

By Garima Chitkara | 27/08/2018

HKEX to launch secure file transfer protocol service for exchange participants later this month to ensure smooth transition to new investor ID regime for northbound trading, set for 17 September.

Market Infrastructure

A New Era for Sino-Foreign Securities JVs

By Benjamin Quinlan | 21/08/2018

For foreign players looking to set up a securities business in China, effectively monetising the JV opportunity isn’t so straightforward, and necessitates an in-depth understanding and review of strategic, regulatory, financial, and operational considerations.

Enforcement

CSRC Bars Dagong from Ratings Business for One Year

By Garima Chitkara | 20/08/2018

The ratings agency is a target of an investigation by the securities regulator for poor governance and risk management following a spate of overly optimistic ratings given to local issuers.

Securities / Derivatives

Foreign Nationals in China Permitted to Directly Trade A-Shares

By Manesh Samtani | 16/08/2018

Foreign individuals working in China will be allowed to open domestic brokerage accounts to trade A-shares; foreign employees living abroad will be entitled to participate in employers’ stock incentive programmes.

Enforcement

UPDATED – CSRC Hits Celebrity Trader with $260mn Market Manipulation Penalty

By Editors | 13/08/2018

Celebrity trader Gao Yong used his control over 16 securities accounts to manipulate stock prices, profiting by almost CNY 900 million in just six months.

Securities / Derivatives

Stock Connect ID System for Northbound Trades Slated for September Launch

By Editors | 13/08/2018

Northbound investor ID system is scheduled to be implemented on 10 September, pending market readiness and regulatory approval, and will not affect the business of existing market participants.