"In the final version of the measures, several important clarifications have been made. Among others, acquisitions of Chinese domestic enterprises by foreign investors are now clearly excluded from the application of the measures, and the concept of "actual controller" is defined. It is also worth noting that mergers between FIEs or between an FIE and a Chinese domestic enterprise fall within the scope of the application of the measures. Apparently the market welcomes and enjoys this fundamental change from approval to record-filing, as evidenced by the fact that in less than twenty days since the measures took effect there have been about 25,000 record-filings completed. That said, new issues may arise in the implementation of this new system, and MOFCOM is expected to issue detailed rules as needed."

"This draft aims to guide more foreign investment toward encouraged areas including environmental restoration and conservation projects, vehicles and automotive parts production, medical institutions (restricted to equity joint ventures and co-operative joint ventures), and logistics and transportation services. The revisions show the Chinese government’s intention to exploit the comparative advantages of each region, promoting the development of service industries, and further liberating foreign investment in the general manufacturing sector."

"The provisions mark a new stage in the development of the forthcoming Shenzhen-Hong Kong Stock Connect. The SZSE announced several regulatory rules, which generally adopt the Shanghai-Hong Kong Stock Connect regime. Meanwhile, the provisions expand the scope of eligible shares and introduce market capitalisation as a screening criterion to prevent the risk of cross-border market speculation and manipulation. Specifically, SZSE shares eligible to be traded through the HKSE include (i) any constituent stock of the SZSE Component Index and SZSE Small/Mid Cap Innovation Index, with an average daily market capitalisation of at least RMB6 billion in the six months prior to the deadline for periodic review of the relevant index, and (ii) the SZSE-listed A shares of A+H companies dual-listed on the HKSE. A daily quota is imposed on both the Shenzhen Connect (at RMB13 billion) and Hong Kong Connect (at RMB10.5 billion)."

"China has previously committed to conduct the first exchange of CRS information by the end of 2018. The draft measures signal the Chinese tax authorities' determination to push for the automatic exchange of CRS information. As non-residents usually do not maintain accounts in Chinese financial institutions due to foreign currency controls, China’s automatic exchange network for CRS information is unlikely to have an immediate impact on non-residents. But the automatic exchange network for CRS information will have a far-reaching impact on Chinese residents who hold offshore assets. In fact, a key underlying purpose of the measures is to enable the Chinese tax authorities to strengthen tax collection on Chinese residents’ offshore income."

"The draft SAIC measures are a welcome effort to clarify the practical application of the general provisions of the Consumer Protection Law introducing the 7-day return policy. By seeking to make clearer, for example, what products are reasonably exempted from the policy, and also the proper condition of goods being returned under the policy, the measures should help reduce abuses of the policy by both unscrupulous merchants and overdemanding consumers."

"The network judicial auction has in recent years become a very popular and successful means to auction enforced properties. In fact, online judicial auctions are widely applauded for making judicial enforcement more efficient and transparent, therefore substantially reducing the potential corruption risks. The measures will help to implement the SPC interpretation on network judicial auctions by standardising the qualifications of service providers. While there are a few famous network judicial auction platforms currently in operation, other regional platforms are being established. By establishing a database of qualified network service providers, the measures will help to ensure an orderly and regulated environment for network judicial auctions."