JC Master Legal News Issue 931

Key Takeaways for This Issue

The “Shanghai Stock Exchange Index Fund Investment Product Development Guidelines (Draft for Public Comment)” is now open for public consultation.

To further standardize the product development and other business activities of publicly offered index funds on exchanges, promote the sustained and sound development of index funds, and safeguard the legitimate rights and interests of investors, in accordance with the China Securities Regulatory Commission’s “Guidance No. 3 on the Operation of Publicly Offered Mutual Funds—Index Fund Guidance (Draft for Comments)” (hereinafter referred to as the “Index Fund Guidance”), the Shanghai Stock Exchange (hereinafter referred to as the SSE) has drafted the “Shanghai Stock Exchange Guidelines for the Development of Index-Based Securities Investment Funds (Draft for Comments)” (hereinafter referred to as the “Development Guidelines”). The draft is hereby made public for public comment, with a deadline for submissions set for August 14, 2020.

Half-Year Recap of Refinancing: Total Volume Exceeds 600 Billion, with Bid-Ask Spreads and Discount Rates Becoming Polarized

Relevant data show that, since the introduction of the new policy, the monthly average number of newly issued private placements has surged from 30–40 to 90–100, while the corresponding financing scale has jumped from RMB 30–40 billion to over RMB 100 billion. Currently, the average monthly financing size of new private‑placement proposals remains close to RMB 100 billion, and some institutions project that the total financing volume of such proposals in 2020 will exceed RMB 1 trillion.

Announcement on Improving and Adjusting the Withholding and Provisional Payment Methods for Individual Income Tax of Certain Taxpayers

To further support stable and secure employment and to alleviate the tax burden on newly hired employees during the withholding and prepayment phase of individual income tax, we hereby announce adjustments to the methods for withholding and prepaying individual income tax applicable to those who first receive wages or salaries in the middle of the year.

Provisions of the Supreme People’s Court on Several Issues Concerning Representative Litigation in Securities Disputes

In order to further improve the system of securities class-action litigation, facilitate investors’ initiation and participation in such proceedings, reduce the costs of protecting their rights, safeguard their legitimate rights and interests, effectively deter illegal and non‑compliant conduct in the capital market, and promote the healthy and stable development of the capital market, these Provisions are hereby formulated in accordance with the provisions of the Civil Procedure Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, and other relevant laws, taking into account the realities of the securities market and judicial practice.