Legislative Updates (1.24-1.30) | 法宝双语新闻

SPC Issues Guiding Opinions Regarding Further Improving the Appointed Mediation Mechanism

Recently, the Supreme People's Court issued the Guiding Opinions regarding Further Improving the Appointed Mediation Mechanism (hereinafter the ‘Opinions’).

The Opinions point out that for disputes involving the interests of people's livelihood, unless mediation is unsuitable according to laws, the people's court may appoint a specially invited mediation organization or specially invited mediator to conduct the mediation. For categorized disputes such as property management, traffic accident compensation, consumer rights protection and medical damage compensation, the people's court should play a demonstrative role in appointing mediation to promote batch and effective resolution of disputes.

The Opinions clarify that for disputes brought by a party to a people's court, if the party applies for or the party agrees to mediation after being guided by the people’s court, the people’s court may appoint a specially invited mediation organization or specially invited mediator to conduct the mediation prior to registration of the case, and the parties should sign a Notice of Assigned Mediation. If the parties do not agree to mediation, they should sign a clear opinion when they receive the Notice of Assigned Mediation. The people's court should transfer the case to litigation after receiving the written materials in which the parties do not agree to the appointed mediation.  

In addition, according to the Opinions, in a case where a mediation is appointed, a pre-pleading mediation name should be compiled, and the prosecution materials should be transferred to a specially invited mediation organization or a specially invited mediator to conduct mediation within three days. In cases involving jurisdiction disputes, the court that first compiles the pre-pleading name is deemed to be the first people's court to file a case.

CSRC Issues Provisions on Calculation Standards for Risk Control Indicators of Securities Companies

On January 23, the China Securities Regulatory Commission issued the Provisions on Calculation Standards for Risk Control Indicators of Securities Companies, effective from June 1, 2020.

Compared with the current risk control indicator system, the Calculation Standards mainly adjust and improve the following aspects:

The first aspect regards encouragement of value investment and introduction of long-term incremental funds. Investment by securities companies in policy financial bonds, index funds and constituent stocks are moderately loosened to promote the introduction of long-term incremental funds in the capital market.

The second aspect regards targeted strengthening of capital constraints and prevention of prominent risks. High-risk businesses such as stock pledges, private placement asset management, private placement fund custody, and consignment services should be given focused regulations, and for specific circumstances such as high-leverage and high-concentration asset management products, and the largest shareholders' high-proportion pledge and low performance guarantee ratios, the calculation standards are further optimized.

The third aspect regards improvement of the completeness of the indicator system based on market development practices. Combined with the new regulations on asset management and the new businesses such as Shanghai-London Stock Connect, Science and Technology Innovation Board, credit derivatives, and stock index options that have been successively launched in recent years, the calculation standards for risk control indicators have been clarified to achieve full coverage of securities companies' business and risks.

The fourth aspect regards satisfaction of the differentiated development needs and preferential release of capital space. Based on the classified evaluation results of securities companies, the risk capital reserve adjustment factor of Class A, AA and above securities companies for three consecutive years has been reduced from 0.7 to 0.5 to further enhance the capital utilization efficiency of high-quality securities traders.

The State Council Adjusts Application of Administrative Regulations in Pilot Free Trade Zones

2020年1月22日，国务院发布《国务院关于在自由贸易试验区暂时调整实施有关行政法规规定的通知》，自发布之日起实施。

On January 22, 2020, the State Council released the Circular of the State Council regarding Temporarily Adjusting and Implementing the Relevant Administrative Regulations in Pilot Free Trade Zones (hereinafter the ‘Circular’), effective from the date of issuance.

According to the Circular, in order to ensure measures of reform and opening-up are implemented well in accordance with the law in pilot free trade zones, three administrative rules on commercial performance, foreign-invested telecommunications enterprises and printing will be adjusted.

CBIRC Issues Circular to Cope with Novel Coronavirus

2020年1月26日，中国银行保险监督管理委员会发布《关于加强银行业保险业金融服务 配合做好新型冠状病毒感染的肺炎疫情防控工作的通知》，自发布之日起实施。

On January 26, 2020, the China Banking and Insurance Regulatory Commission issued the Notice regarding Strengthening Financial Services in Banking and Insurance Industry and Cooperating with the Prevention and Control of Pneumonia Epidemic Situation of Novel Coronavirus Infection (hereinafter the ‘Notice’), effective from the date of issuance.

The Notice requires all local offices of the CBIRC, all policy banks, large-scale banks, joint-stock banks, foreign-funded banks, financial asset management companies, all insurance group (or holding) companies, insurance companies, insurance asset management companies, and all units administered by the CBIRC to implement the requirements for prevention and control of the epidemic, ensure smooth operation of financial services, open up financial service green channels, strengthen financial support for epidemic prevention and control, and provide financial services for enterprises in distress.

According to the Notice, for those affected by the epidemic leading to temporary loss of their income sources, the aforementioned institutions should give appropriate preference to the credit policy, flexibly adjust the repayment rules for housing mortgage and credit card and other personal loans, and reasonably delay the repayment period. Customers who claim insurance for infection with the novel coronavirus should be given priority treatment and the scope of liability should be appropriately extended. For wholesale and retail, accommodation and catering, logistics and transportation, cultural tourism and other industries affected by the epidemic, as well as enterprises with promising prospects but suffering temporary difficulties, loans must not be withdrawn, cut off, or pressed blindly. Measures such as appropriately lowering loan interest rates, improving renewal loan policy, adding credit loans and medium and long-term loans should be encouraged to support relevant enterprises in overcoming the impact of the epidemic.

Urgent Notice Issued Regarding Strengthening the Supervision of Wildlife Markets and Actively Completing the Prevention and Control of Epidemic

2020年1月21日，市场监管总局、农业农村部和国家林草局联合发布《关于加强野生动物市场监管 积极做好疫情防控工作的紧急通知》。

On January 21, 2020, the State Administration for Market Regulation, the Ministry of Agriculture and Rural Affairs and the National Forestry and Grassland Administration jointly issued the Urgent Notice on Strengthening the Supervision of Wildlife Markets and Actively Completing the Prevention and Control of Epidemic (hereinafter the ‘Notice’).

The Notice provides that, first, the sense of responsibility and mission for the prevention and control of the epidemic should be effectively enhanced. Second, the supervision of key links and places should be strengthened. Third, under the leadership of the local party committee and government, the relevant departments of Wuhan should strengthen the administration of various wildlife trading places such as agricultural markets, supermarkets and restaurants, among others, and strictly implement measures for closing wildlife trading markets, prohibit the trading of wildlife and the transportation and sale of wildlife in and out of Wuhan. Fourth, science popularization should be strengthened and a healthy diet should be promoted. Fifth, all departments of all cities should, in accordance with the specific arrangements of the joint prevention and control mechanism, cooperate closely, have on-duty police, form a joint supervision and administration mechanism, and handle complaints and reports from people in a timely manner, improving the overall prevention and control effects. The supervising law-enforcement officers should follow their own safety precautions at work. Major emergencies at work should be reported to the local party committee, government and higher authorities in a timely manner.

Notice Issued Regarding the Guarantee of Medical Staff and Other Related Staff Infected with New Coronavirus Pneumonia Due to Performance of Work

2020年1月23日，人力资源社会保障部、财政部和国家卫生健康委联合发布《关于因履行工作职责感染新型冠状病毒肺炎的医护及相关工作人员有关保障问题的通知》。

On January 23, 2020, the Ministry of Human Resources and Social Security, the Ministry of Finance and the National Health Commission jointly issued the Notice on the Guarantee of Medical and Other Related Staff Infected with New Coronavirus Pneumonia Due to Performance of Work (hereinafter the ‘Notice’).

通知明确，在此次新型冠状病毒肺炎预防和救治工作中，医护及相关工作人员因履行工作职责，感染新型冠状病毒肺炎或因感染新型冠状病毒肺炎死亡的，应认定为工伤，依法享受工伤保险待遇。另外，已参加工伤保险的上述工作人员发生的相关费用，由工伤保险基金和用人单位按工伤保险有关规定支付；未参加工伤保险的，由用人单位按照法定标准支付，财政补助单位因此发生的费用，由同级财政予以补助。

The Notice provides that medical and other related staff who, during the work of prevention and treatment of the new coronavirus pneumonia, become infected with the new coronavirus pneumonia or die of the new coronavirus pneumonia due to performance of their work, should be determined as work-related injuries and enjoy work-related injury insurance benefits in accordance with relevant laws. In addition, any related expenses incurred by the aforementioned staff who have participated in work-related injury insurance should be paid by the work-related injury insurance fund and the employers in accordance with the relevant provisions of work-related injury insurance. Expenses by staff who have not participated in work-related injury insurance should be paid by the employers in accordance with legal standards; and expenses incurred by the financial supporting entities should be subsidized by the finance of the same level.