1. Notice on Enhancingthe Administration of Low-Speed Electrocars Issued
On November 8, 2018, theMinistry of Industry and Information Technology, the National Development andReform Commission, the Ministry of Science and Technology, the Ministry of PublicSecurity, the Ministry of Transport and the State Administration for MarketRegulation jointly issued the Notice on Enhancing the Administration ofLow-Speed Electrocars.
The Notice requires alllocalities to clean up and rectify low-speed electrocars, strictly prohibit thenewly increased capacity of low-speed electrocars, enhance the standardizedmanagement of low-speed electrocars, and accelerate the phasing out of illegallow-speed electrocars in use. In case of nonfeasance in some regions or departments,the accountability inquiry should be enforced.
The Notice clarifies thatthe following three aspects of work are to be carried out: first, the low-speedelectrocars production and sales enterprises should be cleaned up andrectified; second, the newly increased capacity of low-speed electrocars shouldbe strictly prohibited; third, a long-term regulatory mechanism should beestablished.
2.Reward and Subsidy Policies for Fee Rate Reduction forFinancing Guarantee Business for Small and Micro Enterprises to Be Implemented
Lately, the Ministry of Finance and the Ministry of Industry andInformation Technology jointly issued the Notice of Implementing Reward andSubsidy Policies for Fee Rate Reduction for the Financing Guarantee Businessfor Small and Micro Enterprises.
According to the Notice, the central treasury will allocate three billionyuan in the form of rewards and subsidies each year from 2018 to 2020 to theregions with relatively strong policy guidance provided to expand the scale offinancing guarantee business and lower the financing guarantee fee rates forsmall and micro enterprises. In 2018, the reward and subsidy funds will beappropriated to all 37 regions (including provinces, autonomous regions,municipalities directly under the Central Government, cities under separatestate planning, and Xinjiang Production and Construction Corps), and to thoseprovinces meeting certain conditions in 2019 and in 2020.
The Notice clarifies that the central treasury offers rewards andsubsidies to all localities through special funds for the development of smalland medium-sized enterprises. The reward and subsidy funds should bedistributed to finance departments at the provincial level, and they should, inconjunction with the competent departments of small and medium-sizedenterprises at the same level, give priority to supporting the guaranteeinstitutions with enhanced policy guidance and better effects, and especiallyprovide more support for those which directly serve small and micro enterpriseswith lower charges.
The Notice specifies that the guarantee institutions with policy guidanceshould be encouraged by direct grants, performance incentives, payment bysureties and compensation, or otherwise, in a bid to expand the scale offinancing guarantee business for small and micro enterprises, especially theone for a loan of 10 million yuan or less to a single client, the first loan,and medium and long-term loan, and cut the financing guarantee fee rates forsmall and micro enterprises.
3. Measures for theAdministration of Wealth Management Subsidiary Companies of Commercial Banks(Exposure Draft) Issued
On October 19, 2018, theChina Banking and Insurance Regulatory Commission (CBIRC) issued a draft of theMeasures for the Administration of Wealth Management Subsidiary Companies ofCommercial Banks, which is now open for public comments by November 18, 2018.
According to the Draft,the clients who purchase wealth management products for the first time areallowed to carry out the risk tolerance assessment through electronic channelsin addition to face-to-face document signing at the counter in businesspremises. The minimum sales amount for financial management products is not setin the Administrative Measures for Wealth Management Subsidiaries by referringto provisions on the supervision and administration of other asset managementproducts.
With regard to theinvestment of publicly offered wealth management products in stocks, thepublicly offered wealth management products issued by subsidiaries are furtherpermitted to directly invest in stocks, on the basis that the privately offeredwealth management products of banks could be used to make direct investment instocks and the publicly offered wealth management products could be used toindirectly invest in stocks through publicly offered funds in the preliminarystage.
4. Provisions onDisclosure of Accounting Information Concerning Intellectual Property Issued
Recently, the Ministry ofFinance and the National Intellectual Property Administration jointly issuedthe Provisions on Disclosure of Accounting Information Concerning IntellectualProperty, effective from January 1, 2019.
The Provisions clarifythat, for an intangible asset with limited service life, an enterprise shoulddisclose the estimated service life and amortization method; however, if theservice life of an intangible asset is uncertain, an enterprises shoulddisclose its book value and the judgment basis for its uncertain service life.
As required by theProvisions, enterprises should disclose the changes in the amortization periodof an intangible asset, amortization method or its salvage value, causes ofsuch changes, and the influencing factor of current period and future periodsaccording to the Accounting Standards for Business Enterprises No. 28-Changesin Accounting Policies and Estimates and Corrections of Errors.
In addition, theenterprises may voluntarily disclose other relevant information on intellectualproperty which they deem necessary to disclose based on actual conditions.
5. SPC Issues Opinionsto Provide Judicial Services and Safeguards for Rural Revitalization
On November 7, 2018, theSupreme People’s Court (SPC) issued the Opinions on Providing Judicial Servicesand Safeguards for the Implementation of the Rural Revitalization Strategy.
With a total of 45articles, the Opinions cover various issues including the services andguarantees provided by the people's courts for the development of modernagriculture, rural ecological civilization construction, the building of civilized,harmonious and peaceful villages, improvement of the modernization of ruralgovernance system and governance capacity, and protection of farmers’ lawfulrights and interests.
In terms of the servicesand guarantees for the modern agriculture development by the people's courts,the Opinions call for efforts to legally and properly try cases involving ruralland contracting disputes, and deeply implement reform policies of the CPCCentral Committee on the “separation of three rights” in rural land to ensurethe legal and orderly circulation of the usufruct. In terms of protection offarmers’ lawful rights and interests, the Opinions state that efforts should bemade to protect personality rights, personal freedom, personal dignity andhealth of farmers according to the law, with a focus on the protection forlawful rights and interests of empty nesters and left-behind children and therights to education of school-age children in rural areas, and enhance judicialprotection of human rights in rural areas.
In addition, the Opinionsalso require that crime syndicates and “umbrellas” for such offenders should beresolutely investigated and punished in a strict and quick manner according tothe law.