China Regulatory Brief: Foreign Companies Required to File Annual Report Online Before October 15

July 20, 2015 Posted by China Briefing Reading Time: 4 minutes

FIEs Required to File Annual Report Online Before October 15

On July 13, China’s Ministry of Commerce, Ministry of Finance and the State Administration of Taxation jointly released a notice, which requires all the foreign-invested enterprises (FIEs) that are registered and established in China before 2015 to log into the online reporting system and submit their annual investment & operation information (annual report) through the official website. The general filing period starts from July 16, 2015 to October 15, 2015. FIEs established after January 1, 2015 are required to file the annual report starting next year. All the relevant information will be disclosed through http://gongshi.lhnb.gov.cn/ to the public.

China to Support Internet Finance Sector

On July 18, China unveiled its first set of guidelines to regulate and govern its rapidly developing internet finance sector. The guidelines clarify the definition of certain internet financing services (online payment, online crowdfunding etc.) and are expected to support internet companies to set up platforms for online banking, insurance and securities. Meanwhile, the guidelines will provide a tax break for eligible start-up companies and encourage companies to get listed on China’s main stock index.

China Looking to Establish Jing-jin-ji Development Bank

In order to promote the coordinated development of Beijing-Tianjin-Hebei and the integration of the financial markets in the three regions, the Chinese government is currently considering the establishment of the Jing-jin-ji (an abbreviation of the Chinese names of Beijing, Tianjin, and Hebei) Development Bank. Further, the three regions will contribute capital to establish a Beijing-Tianjin-Hebei Industry Structure Adjustment Fund, which is expected to reduce the cost of financial transactions across the three administrative regions.

Certain Goods under CEPA to be Subject to Zero Customs Tariff

China’s State Council has recently released a Notice (Shui Wei Hui [2015] No.8), which clarifies that in accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and the Closer Economic Partnership Arrangement Between Mainland and Macau, three types of goods originated from Hong Kong (i.e., HS code 29031300 Chloroform, 56012100 Cotton pad and 90214000 Hearing aid), as well as four goods originated from Macau shall be subject zero customs tariffs starting July 1, 2015. Since its implementation in 2004, the CEPA has greatly facilitated Macau and Hong Kong’s economy.

Investment in the Interbank Market Needs to be Filed with PBoC

On July 14, the People’s Bank of China (PBoC) clarified issues on investment of overseas central banks, monetary authorities, as well as international finance organizations into China’s interbank market. According to the PBoC announcement, all the overseas institutional investors looking to invest in China’s interbank market are required to complete the filing procedures with the PBoC before entering the market. Once approved by the PBoC, the overseas institutional investors may carry out certain transactions as current bond, bond buyback, bond loan, spot bond, interest rate swap, spot interest rate agreement as well as other transactions in the interbank market and decide the size of investment at their own discretion.

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