State Council Reminds PRC Govt. Agencies New Company Law and Securities Law Not Yet In Force
February 6th, 2006After being closed for a week for the Chinese New Year break, China’s stock markets have moved up a bit over the last few days.
(This brief PRC press story) speculate that a recent State Council Notice contributed to today’s uptick in the markets.
The State Council’s General Office issued a Notice on Work Related to the Thorough Implementation of the Revised Company Law and Securities Law [国务院办公厅关于做好贯彻实施修订后的公司法和证券法有关工作的通知 Guowuyuan bangongting guanyu guanche shishi xiudinghou gongsi fa he zhengquan fa you guan gongzuo de tongzhi] back on December 23. The Chinese text is available here.
A report about the Notice appeared in today’s China Securities Journal.
The Notice reiterates that stock exchanges cannot be established without State Council approval and that trades may not take place off approved exchanges without special State Council approval. It also reiterated that traders must observe China’s limitation on margin trading.