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This week the CSRC and HK SFC allowed dual share trading between the two exchanges, Weibo chose Nasdaq for its listing and the EU trade commissioner slammed China's telecom subsidies [ABSTRACT FROM AUTHOR]

The article outlines the measures issued by the China Securities Regulatory Commission (CSRC) to strengthen the regulation of initial public offerings (IPO) of shares in 2014. Topics discussed include the random checks of the price inquiry and roadshow process of IPO issuers, the required issuance of a special investment risk announcement and the random checks of the quoting process by investors.

This section offers legislation news briefs as of January 2014. A review will be conducted by the China Securities Regulatory Commission (CSRC) on the contents of offer application documents and information disclosures for their legal compliance. The People's Bank of China (PBOC) moved to allow offshore parents of firms in the free trade zone to issue renminbi denominated bonds on capital markets in China.

The article reports that radical reforms related to the capital markets were approved by China's Third Plenum, which includes a registration-based system that could open the market and align it with international standards. Topics discussed include an explanation on the move to registration-based system from the existing approval-based system for listings and the reason behind China Securities Regulatory Commission (CSRC) being reluctant before to adopt a registration-based system.

An interview with David Fu, a staff member at the Strategy and Development Committee of the China Securities Regulatory Commission (CSRC), is presented. Fu said he received a degree in English language from Anhui Institute of Education. He said he worked as a staff member at the CSRC from February to May 2013. Fu talked about some of the latest trends in China's capital markets.

The article focuses on the General Office of the State Council's opinions which guides the economic structure of China. The State Council continues to implement sound and stable monetary policy, maintaining credit and money supply. The Council also integrates financial resources to support micro and small enterprises, as well as accelerates the growth of a multi-level capital market.

The China Securities Regulatory Commission issued Tentative Provisions for securities investment fund management, while the Ministry of Commerce published Tentative Provisions over indirect investment from Taiwanese investors [ABSTRACT FROM AUTHOR]

The Supreme People's Court has released an interpretation on employment contracts and the China Insurance Regulatory Commission has produced a circular on investment management capabilities [ABSTRACT FROM AUTHOR]

The article focuses on the state of the Chinese capital markets in 2012. Jingtian & Gongcheng's Dai Guanchun shared his optimism for 2013 as according to him, there were too many initial public offerings (IPO) approved during early 2013 and most those approved are not generating profits for investors. Wayne Chen of Links Law Offices said the move of the China Securities Regulatory Commission in October 2012 will allow companies looking for larger shareholder for fundraising purposes.

An interview with Gary J. Gao and Y Q Richard Song, lawyers at Duan & Duan Law Firm, is presented. They cite several legislative changes that affected the Chinese capital markets such as regulations permitting qualified foreign investors to issue renminbi-denominated bonds. They note that they concentrate on emerging markets as part of their offshore initial public offering (IPO) strategy. They consider getting China Securities Regulatory Commission (CSRC) approval as one problem with IPOs.

The article focuses on the Provisions on Issues Relevant to the Implementation of the Measures for the Administration of Securities Investments in China by Qualified Foreign Institutional Investors issued by the China Securities and Regulatory Commission (CSRC). It notes that the provisions seek to strengthen supervision and gain more foreign long-term institutional funds for the capital markets in the country. The provisions raise the allowed stake of foreign investors in listed firms to 30%.

The article reports that the China Securities Regulatory Commission issued on December 17, 2011 two new laws that would launch the Renminbi Qualified Foreign Institutional Investors (RQFII) of Fund Investment Companies and Securities Companies pilot programme. The two laws will allow overseas investors to invest in Mainland's capital markets using renminbi capital raised offshore. Further details on the laws and their expected impact on business and investment are also discussed.

This article explores the growth of short selling in China in 2011. It attributes the growth to the emergence of short selling on the futures exchange and the effort of the government to develop and improve its capital markets. It also discusses the implementation of rules governing short selling in the country, including the Rules Regarding Stock Index Futures.

The article reports on the opening of an office by U.S. investment firm Blank Rome in Shanghai, China for handling Chinese clients seeking access to U.S. capital markets.

The article considers the issues surrounding the legal structure of the international board of the Shanghai Stock Exchange (SSE). Zhong Lin of Chen & Co. says coordination is the main problem of the legal structure because of the differences between China and other jurisdictions such as company law and securities law. Among the actions that should be taken by business enterprises planning to be listed on SSE are speaking with legal and financial advisors and studying the capital market of China.

The article offers information on the Opinion on Combating and Safeguarding Against Insider Trading in the Capital Markets in Accordance With the Law, issued by China's General Office of the State Council on November 16, 2010. Definitions of the terms "insider trading" and "insider information" are presented. Based on the Opinion, insider trading could be prevented through the formulation of a system that will maintain the confidentiality of listed companies' insider information and the improvement of the systems for information disclosure.

The article reports on the increasing number of securities investment advisory businesses in China as the country's capital markets and its securities-related asset management sector grow. The Provisional Measures for the Administration of Securities and Futures Investment Consultancy is the main regulatory rule for advisory businesses. Analysis, forecast and advice on securities investments are given by these businesses, which include fund managers, investment managers and securities companies.

The article reports on the initial public offering (IPO) of Agricultural Bank of China (ABC) in 2010, which raised 19.2 billion U.S. dollars. The IPO was both listed on the Shangghai and Hong Kong stock exchanges. It is said that the IPO is the world's largest in 2010 as of September. The issuer was advised by DeHeng Law Office based in Beijing, China. The banks which underwrote the IPO include China International Capital Corp., Citic Securities and China Galaxy Securities.

The article discusses the improvements in the capital markets of Taiwan in 2010. It mentions that the markets is increasingly becoming an attractive destination for technology firms to list their securities as well as initial public offerings (IPO). According to the author, the markets have different features such as excellent liquidity for firms of comparable size and significantly lower IPO costs.

The article focuses on the trial implementation of rules for handling unusual trading circumstances in China. It was issued on November 2, 2009, with the Shanghai Stock Exchange as interpreting authority. The article provides a term for unusual trading circumstances as circumstances that lead to the failure to carry out all or some securities transactions, caused by accidents or technical failure. According to the rules, when these happen, the Stock Exchange can implement suspension of certain securities, trading and delay of settlement.

The article reports on the implementation of rules for handling unusual trading in China. On November 2, 2009, the Shenzhen Stock Exchange issued measures for handling unsual trading circumstances. For more information, the article refers to the digest on the Shanghai Stock Exchange, Implementing Rules for Handling Unusual Trading Circumstanes (Trial Implementation).

The article focuses on the status of China's capital markets in 2010. The author says that 2010 is considered to be a significant year for capital markets as they come back to life after 10 months of slow growth. Specialist lawyers say that listings in Shanghai look good as the market remains stable. It is also expected that foreign issuers will also be able to list in Shanghai. The author also describes ChiNext and the secondary fundraising market as areas of development in 2010.

The article reports on the lower ranking of China in the 2009 global rankings of international financial systems and capital markets of the World Economic Forum. The country ranks at the 26th place with a score of 3.87, marking a slide of two places from the previous year. It is said that the country is not performing well in areas including financial sector liberalisation and corporate governance. It adds that the country landed on the top spot in the rankings for initial public offering (IPO) market share.

The article presents information on the so-called Little red-chip model which was a common way used by private Chinese companies to seek listing on overseas stock exchanges. It says that under China's Rules, domestic Chinese companies are prohibited from raising money on overseas capital markets. In this model, a special purpose company will be set up by the owner of the private Chinese company in a tax-haven country like the British Virgin Islands (BVI).

The article discusses the Guiding Opinion on Inspector of Qualified Foreign Institutional Investors (QFII) issued by China Securities Regulatory Commission (CSRC) in light of the growing number of QFII applications and the further opening up of China's capital market to foreign investors. The Guiding Opinion outlines the requirements and duties of QFII inspectors. The role of the Guiding Opinion in compliance control of QFIIs and the management of QFI inspectors are also cited.

The article announces the International Firm of the Year awards given to firms in different categories by "China Law & Practice" on September 18, 2008 including Allen & Overy in the banking sector, Freshfields Bruckhaus Deringer in the capital market sector and intellectual property law firm Rouse.

The article reports that the State Council in China approved a draft regulation on Supervision and Administration of Securities Company. Grandall Legal Group managing partner Charles Guan relates that the regulation offers support for the Chinese capital market in order to ensure stable development. It is stated that with the standardization of the supervisory system of securities companies, the Chinese capital market may become more lawful and transparent.

The article offers information on a report released by DLA Piper which states that Hong Kong, China and India are among the emerging markets that progressively shape the landscape for international markets. According to the report, the continuing rise in activity by companies in the emerging markets has benefited the global initial public offering and merger and acquisition markets over the last six months. Stephen Peepels of DLA Piper cited China and India as the two countries to have a great influence on the direction of international capital markets.

The article highlights the changes made on capital market regulations in Indonesia. It explains the provisions of Rule No. IX.E.1 on Affiliated Party Transactions and Conflicts of Interest in Certain Transactions, Rule No. IX.E.2 on Material Transactions and Change of Main Business Activities and Rule No. IX.D.4 on Capital Increases Without Pre-emptive Rights. The effect of such regulations on Indonesian public companies is also described.

The article reports on the approval given by Hong Kong, China's listing committee and regulator for Rusal's Hong Kong initial public offering on December 31, 2009, despite not meeting profit requirements.

The article presents information on the completion of the landmark public offering and institutional placement of the People's Republic of China (PRC) Central People's Government's renminbi-denominated bonds by the Ministry of Finance. It is inferred that the aggregate principal amount of Rmb6 billion was provided in three tranches, which are 2.25 percent bonds which will due in 2011, 2.70 percent which will be due in 2012 and 3.30 percent bonds which will due in 2014.

The article presents information on the factors to consider to cope with the new capital markets law in Korea. It is suggested not to take anything for granted and treat the market as a completely new establishment. Credit Suisse managing director Patricia Sindel shared that the underwriting agreement could not be executed in the country unless the underwriter is licensed.

The article presents information on the call of Mark Dickens, head of listing at the Hong Kong Stock Exchange in China, for a new listing regime to attract foreign companies to the country during the Asia Capital Markets Forum on November 18, 2009. Dickens stated that the new listing management has to be retail oriented and will need a red flag or Hong Kong Depositary Receipt regime.

The article presents information on the topics discussed during the International Financial Law Review (IFLR) capital markets conference in November 2009. It is recalled that lawyers expressed their grief towards the lack of work and take comfort knowing that private practice and in-house counsel were all in the same situation in 2008. The attendees talked about new structures, emerging trends and possible solutions to long-standing problems in the event.

The article reports that the Hong Kong stock exchange is considering applications from British Virgin Islands companies. This development is part of the Hong Kong stock exchange's effort to facilitate listing for foreign companies. The Hong Kong stock exchange is also considering the jurisdictions of Israel, Jersey, and Russia.

The article reports that promoters in India are obliged to disclose their pledged shares in listed companies that they have business relationships with. The regulations, showed on January 28, 2009 by the Securities and Exchange Board of India (SEBI), state that disclosures can either be when shares are pledged (event-based) or periodic, and require holders of 25,000 shares or 1 percent of the capital of a business to report their holdings. SEBI aims to make enhanced disclosure requirements in Indian capital markets, with information on pledged shares.

This article reports on the establishment of an India team by the law firm Clifford Chance in its office in Singapore in 2008. The team will offer legal services to the Indian capital markets. Corporate partner Edward Bradley will lead the team. Bradley will be joined by partners Chris Holland and Rahul Guptan.

This article reports on the decision of the Malaysian Securities Commission to issue Islamic fund licenses to Reliance Asset Management, Global Investment House, Al Aqeelah and Bank Muamalat Indonesia in November 2008. The issuance of the licenses is part of an attempt to liberalize capital markets in Malaysia. The move also complements the initiatives of the Malaysian International Islamic Finance Centre (MIFC) to turn the country into an international Islamic financial hub.

The article reports on a 1 billion Saudi riyal sukuk issued by Saudi Binladin Group (SBG) via British Virgin Islands special purpose vehicle Purple Island. The deal served as the first one issued in the Saudi debt capital markets. The sole lead manager and bookrunner for the deal was HSBC Saudi Arabia.

The article focuses on the takeover rules introduced by the Indonesian capital markets regulator Bapepam-LK on June 30, 2008. Under the new rules, a share ownership theshold increased to more than 50%. The acquiring company must make sure that at least 20% of the target's shares are publicly held within two years of a tender offer. According to the regulator, it plans to increase market liquidity and give opportunity to investors to own shares following a listed company's takeover. The thesholds set for controlling shareholder are also cited.

The article focuses on rules on real estate investment trusts (REIT) issued by the Indonesian Capital Market and Financial Institution Supervisory Board in 2007. It is said that this move is in response to developments in the area of one of the competitive alternative investments in international capital market practice. Under the rules, a REIT is defined as a vehicle that collects funds from public investors to further invest in real estate assets and/or cash and cash equivalents. Several conditions wherein REITs may only invest are also outlined.

The article presents views on whether diverse regulatory structures of the capital markets in Asia provide a good foundation for innovative transactions. One lawyer said that in some ways, they can be more difficult because they are less defined. Another noted that he strongly believes that necessity drives innovation and therefore investor appetite is only part of the solution.