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

Sovereign Project | 48008-001

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 Details

  • Project Officer
    Giannetto, Giacomo G.
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Modality
    • Technical Assistance
  • Sector
    • Finance
Project Name Improving the Legal Framework for Securities and Futures Markets
Project Number 48008-001
Country / Economy China, People's Republic of
Project Status Closed
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 Inputs to the securities law amendment have been completed the second reading is pending. Initial inputs to the implementing agency on a possible futures law have been completed. However, there is no clarity yet as to the proposed legislative agenda and timing for a futures law. The project will end on 31 October 2017.
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 conference was held in April 2017 to discuss the secturities law amendment. As there is no clear legislative plans formulated for a futures law, work in this are has only been on providing the implementing agency with initial research and background material. The TA closing was estended from January 2017 for an additional 10 months to 31 October. A final meeting for the TA is planned in late October.
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 occurred between the EA and ADB that has included review missions. The last review mission was held in May 2017.
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 ADB Officer Giannetto, Giacomo G.
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 29 Sep 2017

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 31 Oct 2017 31 Dec 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 17 Jun 2022 182,782.47

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