China Adopts the Rules on Implementing the Registered Capital Management System of the Company Law

A State Council executive meeting was held on June 7, 2024. The meeting studied policies on promoting the high-quality development of venture capital and heard a report on the current situation of the property market and the consideration on related work in the next step. The meeting also adopted the Rules on Implementing the Registered Capital Management System of the PRC Company Law (Draft).

On the implementation of the registered capital management system, the meeting emphasized the need for efforts to implement policies such as those to adjust the investment periods of existing companies, ensure shareholders fulfill their capital contribution obligations, and optimize registration services.

The meeting stressed that for the development of venture capital, efforts will be made to improve the support policies along the whole chain of “fundraising, investment, management and exit”, encourage long-term investment from insurance and social security funds, alongside efforts to attract foreign venture capital funds actively, broaden exit channels, and improve merger-and-acquisition and share-transfer policies. The meeting said that China will implement differentiated supervision plans, refine preferential tax policies, support the development of professional institutions, and handle the relationship between government funds and market-oriented funds properly.

The meeting also deliberated and adopted the Guidelines on Improving the Long-term Mechanism of Basic Medical Insurance Participation, and discussed and approved in principle the Law on Public Health Emergency Response Work (Draft).