According to Xinhua News (Chinese website), on December 28 the Standing Committee of the 13th National People’s Congress of the People’s Republic of China has revised and adopted the “Securities Law of the People’s Republic of China”during its 15th meeting. The newly revised security law will be promulgated for implementation on March 1, 2020.
The follow aspects are the important parts that are revised in the securities law:
#1 Streamlined and optimized the conditions for securities issuance, and changed the current stock issuance requirement of “sustainable profitability to “have continuous operation ability”
#2 Adjusted the procedures for securities issuance. On the basis of clearly specifying the securities regulatory authority of the State Council or a department authorized by the State Council as a statutory registration authority, abolished the system of issuance review committees stipulated by the original law, and clarified that stock exchanges institution can review applications for securities issuance in accordance with regulations
#3 Strengthen the disclosure of information in securities issuance, clearly stipulate that the securities issuance application documents submitted by the issuer shall fully disclose the information necessary for investors to make value judgments and investment decisions, and require that the content be true, accurate, complete, concise and clear, and easy to understand
#4 Clearly stipulate that “the specific scope and implementation steps of the securities issuance registration system shall be prescribed by the State Council”, which leaves room for the step-by-step implementation of the registration system in practice
President Xi Jiping has signed the law and made it 37th President’s decree of People’s Republic of China.