Optimisation Policy for the Basic Medical Insurance

Premier Li Qiang held a State Council standing meeting on June 7 to examine and adopt the "Guiding Opinions on Improving the Long-term Mechanism of Basic Medical Insurance Participation". The meeting pointed out that China has built the world's largest, universal coverage of the basic medical insurance network, to continue to optimize the participation structure, improve the quality of participation. To further liberalize and relax the restrictions on participation based on household registration requirement, expand the scope of employee health insurance individual account co-payment, establish incentives for continuous participation and Zero reimbursement for the fund , introduce fixed and variable waiting periods, improve the management of health care insurance and medical services, and effectively enhance the public's sense of access to insurance and the convenience of medical care.

On June 7, Premier Li Qiang presided over the State Council executive meeting to review and adopt the draft "Provisions on the Implementation of the Registered Capital Management System under the Company Law of the People's Republic of China". The meeting emphasized that strengthening the registered capital management system is essential for implementing the requirements of the newly revised Company Law and optimizing the business environment. The policies aim to steadily facilitate companies in adjusting the capital contribution period and other related policies on the ground, ensure that companies regulate shareholder capital contributions according to the law, improve registration services, effectively disseminate and interpret policies, and continuously foster a first-class business environment.

New Rules to Prevent Insider Trading

The financial regulator has issued new rules aimed at preventing insider trading by directors, supervisors, senior officers, and related parties of listed companies. These regulations seek to promote transparency, fairness, and integrity in financial markets.

Under the new rules, insider trading, defined as trading securities based on material non-public information obtained through one's position or relationship with the company, is strictly prohibited. Directors, supervisors, and senior officers are prohibited from:

• Trading the company's securities when in possession of material non-public information.

• Disclosing such information to relatives or third parties for trading purposes.

• Using non-public information obtained from colleagues for personal trading.

These individuals must report any changes in their shareholdings within specified timeframes and submit regular reports detailing their current holdings. Trading restrictions will also be imposed during certain periods, such as before financial reports or major announcements, to prevent the misuse of non-public information.

Companies are required to establish robust internal controls, policies, procedures, and training programs to ensure proper handling of confidential information and compliance with insider trading laws. Violations can result in severe monetary penalties and potential imprisonment of up to 10 years.

The new regulations aim to protect investors and maintain public confidence in the financial system by holding directors, supervisors, senior officers, and companies accountable for any insider trading violations.

At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.

PHC Advisory is a company of DP Group: an international professional services conglomerate of companies with approximately 100 experienced professionals worldwide. We offer comprehensive services in tax, accounting, and financial consulting, including financial supervision, financial audit, internal audit, internal control over financial reporting, and support for audited financial statements and annual audits, ensuring clients' financial transparency and compliance.

The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way.

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