China (CN)

Jurisdiction Overview

IDQuestionAnswer
172 *Are bearer shares available? Yes, unregistered bearer shares are available/circulating or registered by a private custodian.
 Data Date: 2019

Notes

 
The FATF reports: "Bearer shares are permitted to be issued by all domestic and foreign registered companies that issue shares. Transfer of bearer shares becomes effective immediately upon delivery of the shares by the shareholder to the transferee [...] Also, there are no provisions that require all bearer shares issued on paper to be deposited with the CSDC[China Securities Depository and Clearing Corporation], or that prevent issuing new bearer shares on paper" (FATF 2019: 229).
 
The Global Forum reports: "Since 1992 joint stock companies have been permitted to issue shares in bearer form (Company Law, Art. 130). Any joint stock company that issues stock certificates in unregistered form must record the amount, serial numbers and date of issue of the stock certificates (Art. 130). The Global Forum further adds: "While it is not possible to disclose the exact figures on bearer shares in this report, China’s authorities have advised that the number of securities issued in bearer form is strictly limited." (GF 2013: 38).

Sources

FATF 2019: 229
 
GF 2013: 38