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.
|Project Name||Improving the Legal Framework for Securities and Futures Markets|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|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.|
|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 for the second reading. The date of the second reading has not yet been determined. Focus on the futures law has not yet begun as no date for a first draft reading has been proposed.|
|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. Plans to hold a conference that includes international and national experts to discuss the draft securities law amendments will be proposed after the second reading and likely in 1H17. 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.
Extension for 9 months has been approved to allow for work to finalize inputs to the securities law by providing comments on the published draft and a re-direction of efforts to the proposed futures law. It will also allow time to hold the workshop on securities in Q3 2017.
|Summary of Environmental and Social Aspects|
|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 occurred between the EA and ADB that has included review missions. Review missions were held in February and August 2016.|
|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 ADB Officer||Giannetto, Giacomo G.|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Public Mgt, Financial Sector and Regional Coop Division, EARD|
Legislative Affairs Commission
1, Qianmen Xidajie,
Beijing, People's Republic of China
|Concept Clearance||19 May 2014|
|Fact Finding||07 Apr 2014 to 08 Apr 2014|
|Approval||10 Jul 2014|
|Last Review Mission||-|
|Last PDS Update||28 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|10 Jul 2014||01 Aug 2014||01 Aug 2014||31 Jan 2017||31 Oct 2017||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|300,000.00||0.00||0.00||0.00||0.00||0.00||300,000.00||10 Jul 2014||113,524.59|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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