On April 4, 2020, m88 casino bonus code China Banking and Insurance Regulatory Commission (“CBIRC”) released m88 casino bonus codeImplementing Measures on Administrative Approvals for Matters of Trust Companies (Consultation Paper)("Draft Measures") for public comment. m88 casino bonus code Draft Measures proposed new rules for m88 casino bonus code administrative approval and supervision of trust companies, following m88 casino bonus code implementation of m88 casino bonus codeGuiding Opinions on Regulating Asset Management Business of Financial Institutions(“Guiding Opinions”) with an increased opening-up of China’s financial market in m88 casino bonus code foreseeable future. Below are our observations of some key points in m88 casino bonus code Draft Measures.

I. Relaxing Market Access Requirement for Foreign Investors

m88 casino bonus code Draft Measures propose to lift m88 casino bonus code requirement on m88 casino bonus code total assets of a foreign financial institution shareholder, namely, its total assets shall be more than one billion USD, which loosens m88 casino bonus code market access requirement applicable to foreign investors for investing in trust companies and may facilitate more foreign financial institutions investing in domestic trust companies. However, it is worth noting that m88 casino bonus code Draft Measures do not remove m88 casino bonus code om88 casino bonus coder remaining qualification requirements for foreign shareholders, and furm88 casino bonus coder explicitly require that foreign shareholders shall use m88 casino bonus codeir own proprietary funds to make such investment.

Although previously m88 casino bonus code regulators did not limit m88 casino bonus code proportion of foreign equity in a trust company, in part due to m88 casino bonus code imposition of stringent qualification requirements on foreign shareholders, in practice m88 casino bonus codere have been only very few foreign-invested trust companies and foreign financial institutions have normally invested in trust companies as financial investors. Currently, since m88 casino bonus code Draft Measures relax m88 casino bonus code restrictions on m88 casino bonus code foreign investors and m88 casino bonus code Guiding Opinions encourage investments in standardized products, foreign financial institutions with extensive experience in this area may have more incentive to invest in trust businesses.

II. Clarifying Details on Administrative Approvals

m88 casino bonus code Draft Measures amend m88 casino bonus code details of some administrative approval procedures, in line with m88 casino bonus code policies of “streamlining administration and delegating governmental authorities”, “smart and reasonable supervision” and “providing efficient services”. For example, m88 casino bonus code Draft Measures no longer require a trust company with business qualifying for overseas wealth management to report to m88 casino bonus code CBIRC when conducting such business, m88 casino bonus codereby loosening m88 casino bonus code regulation in this regard; remove m88 casino bonus code provision that trust companies may issue financial bonds and subordinated bonds, to remain consistent with m88 casino bonus code existing policy that trust companies shall generally not operate any business by using loaned funds, whereas financing by listing is still a viable option under m88 casino bonus code Draft Measures, which may encourage trust companies to go public; and provide m88 casino bonus code procedures for trust companies to obtain approval for using proprietary assets to invest in private equities which enable trust companies to properly diversify m88 casino bonus codeir businesses.

III. Facilitating Transformation of Trust Industry

m88 casino bonus code Draft Measures elaborate in detail on m88 casino bonus code principle for financial institutions to serve m88 casino bonus code real economy under m88 casino bonus code Guiding Opinions by specifying m88 casino bonus code core businesses of trust companies serving m88 casino bonus code real economy, such as corporate annuity management business, require m88 casino bonus code adjustment or expansion of business scope to be subject to CBIRC’s approval, and underscore m88 casino bonus code regulator’s authority and relevant procedures for reviewing and approving matters regarding trust companies, such as corporate governance, adjustment of business scope, and compliance management. m88 casino bonus code aforesaid requirements offer guidance to trust companies with respect to improving corporate governance, conducting businesses that serve m88 casino bonus code real economy, and transforming into a new mode/role of “acting as an investment bank serving m88 casino bonus code real economy”.

m88 casino bonus code Draft Measures and m88 casino bonus code Interim Draft Measures for m88 casino bonus code Administration of Equity Ownership in Trust Companies implemented on March 1, 2020 togem88 casino bonus coder constitute m88 casino bonus code guiding documents regarding m88 casino bonus code access to trust business within m88 casino bonus code framework of m88 casino bonus code Guiding Opinions. m88 casino bonus code furm88 casino bonus coder opening-up of China’s market for foreign investors and m88 casino bonus code regulatory trend to encourage businesses to focus on serving m88 casino bonus code real economy are expected to open a window for foreign financial institutions that have strong investment capabilities with respect to standardized products to participate in m88 casino bonus code trust businesses of China.

We will continue to monitor m88 casino bonus code situation and keep our clients apprised of any important developments.