China, People's Republic of: Improving the Legal Framework for Securities and Futures Markets

Sovereign Project | 48008-001 Status: Active

Summary

The TA will provide inputs to support the review of the draft of the revised Securities' Law and also the draft of a new Futures' Law. These inputs will be used in the legislative process to prepare for the first and subsequent readings of the laws by the Standing Committee of the NPC. Work on Securities' and Futures' Laws has already been listed on the 5-year lawmaking plan of the Standing Committee of the 12th NPC. The TA directly supports the process to enable up-to-date and complete legislation to facilitate development of the financial system. The TA builds on prior ADB work on legislation that includes ADB's Law and Policy Reform program in the PRC from 1993 to 2003 that facilitated the development of commercial and economic laws.

Latest Project Documents

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Procurement Documents

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Project Name Improving the Legal Framework for Securities and Futures Markets
Project Number 48008-001
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8684-PRC: Improving the Legal Framework for Securities and Futures Markets
Technical Assistance Special Fund US$ 300,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming No gender elements
Description The TA will provide inputs to support the review of the draft of the revised Securities' Law and also the draft of a new Futures' Law. These inputs will be used in the legislative process to prepare for the first and subsequent readings of the laws by the Standing Committee of the NPC. Work on Securities' and Futures' Laws has already been listed on the 5-year lawmaking plan of the Standing Committee of the 12th NPC. The TA directly supports the process to enable up-to-date and complete legislation to facilitate development of the financial system. The TA builds on prior ADB work on legislation that includes ADB's Law and Policy Reform program in the PRC from 1993 to 2003 that facilitated the development of commercial and economic laws. The work resulted in adoption of the first Securities Law, Trust Law, Company Law (amendment), Bankruptcy Law, and legal adjustment relating to antidumping, countervailing duties, safeguards, import and export of goods, Foreign Trade Law, and cross-border merger and acquisition, upon accession to the World Trade Organization. The TA is also related to the existing TA, Developing a Legal System for the Credit Market and to the closed TA on Capacity Building of the Capital Markets' Regulatory System.
Project Rationale and Linkage to Country/Regional Strategy
Impact More efficient, innovative, and stable financial market to better serve the real economy.

Project Outcome

Description of Outcome Updated legal frameworks to support continued expansion and innovation in securities' and futures' markets integrating a balanced approach between financial stability and financial innovation.
Progress Toward Outcome Current focus of the project remains on the securities law amendment pending completion of a final draft. In 4Q16 it is anticipated that the project team will shift focus to support creation of a law on futures coinciding with the executing agencies shift in focus away from the securities law.
Implementation Progress
Description of Project Outputs Analysis of the status of the legal framework for the securities' and futures' markets and preparation of inputs to the amendment of the Securities' Law and new draft Futures' Law.
Status of Implementation Progress (Outputs, Activities, and Issues) Research currently focuses on supporting specific questions and issues raised by the executing agency regarding the securities law amendment. A study tour was held in November 2015 to France to visit the securities regulator, the Paris Borse and various other counterparts. A draft securities' law amendment was produced in May 2015 and elements were reviewed by the project team to provide comments. Plans are to hold a conference that includes international and national experts to discuss the draft securities law amendments in 4Q16. Due to delay in plans of the executing agency to begin work on the futures law and in line with the governments plans, the TA closing will be extended from January 2017 for an additional 12 months.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The EA was closely integrated into the project design.
During Project Implementation The EA has taken steps to coordinate the work of consultants at project start-up. Regular communication has occured between the EA and ADB that has included review missions. A review mission was held in February 2016.

Business Opportunities

Consulting Services One international consultant for 6 person-months and two national consultants for 11 person-months total will be engaged in accordance with ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time), and proceeds will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). An Advance Payment Facility will be used for training, seminar and conference administration by the EA.

Responsible Staff

Responsible ADB Officer Giacomo Giannetto
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Legislative Affairs Commission
1, Qianmen Xidajie,
Xicheng District,
Beijing, People's Republic of China

Timetable

Concept Clearance 19 May 2014
Fact Finding 07 Apr 2014 to 08 Apr 2014
MRM -
Approval 10 Jul 2014
Last Review Mission -
Last PDS Update 30 Mar 2016

TA 8684-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jul 2014 01 Aug 2014 01 Aug 2014 31 Jan 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 0.00 0.00 0.00 0.00 0.00 300,000.00 10 Jul 2014 66,008.61
Title Document Type Document Date
Improving the Legal Framework for Securities and Futures Markets Technical Assistance Reports Jul 2014

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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