China's central bank planned to "strictly control lending to high-polluting, high-energy consuming industries and to those with overcapacity" after the country recorded a record surge in bank loans and money supply. Banks extended Rmb1, 890bn ($278bn) in loans in March, breaking the record set in January. This means bank lending is approaching the government's full-year target of Rmb5, 000bn – the total for the three months to March 31 was Rmb4, 580bn. As a result, the broad M2 measure of money supply grew to a record 25.5 per cent in March. (Source: ft.com)

Borrowers are beginning to see the landscape thaw, as banks ease criteria and display a renewed appetite for lending. HSBC has set aside £1bn to lend to customers who are buying properties with deposits of just 10 per cent. Other lenders such as Abbey have introduced new deals that will lend up to 85 per cent of a property's value. The willingness to lend at high loan-to-values signals a belief that house price falls are at least easing. The recent injection of cash from the government has propelled the banks to provide more loans. (Source: ft.com)

Microsoft Corp was ordered to pay $388 million in damages for infringing a patent held by anti-piracy software maker Uniloc Inc. The federal court in Rhode Island found that Microsoft infringed Uniloc's patent on software that generates unique identities for licensed users and prevents unauthorized use or copying of programs. The damages award is one of the largest on record in patent law disputes. (Source: reuters.com)

Every large or well-known Chinese company that prepares to expand overseas faces the risk of having its trademark registered by someone else in that market first. Chinese companies operating in Hong Kong, the US, and in European and African markets were often targeted. Often the motivation is to disrupt a company's overseas expansion on behalf of a direct competitor. In other cases, customers, distributors or retail partners make the application for registration, or individuals apply with the aim of selling the trademarks back to the company. (Source: ft.com)

France's Schneider Electric has agreed to pay low-voltage equipment maker Chint Group of Wenzhou $23m to settle a patent lawsuit – the largest recorded settlement in an IP case in China. The settlement was a "wake-up call" to foreign companies about the growing risk of lawsuits from China groups asserting IP rights. Traditionally, damage awards in Chinese IP lawsuits have been small, and the plaintiffs have usually been foreigners suing Chinese companies claiming infringement of IP rights. (Source: ft.com)

At a recent meeting, European Patent Office decided to implement the rules of the European Patent Convention. The amendments will be taking effect as of 1 April 2010. Stricter rules will apply regarding the time limit for filing of divisional applications. Two types of divisional applications are distinguished: a required application and a voluntary application filed on the applicant's own initiative. Furthermore, a number of procedures previously belonging in the examination phase will be conducted in the search phase. (Source: mondaq.com)

Families that have parked some of their wealth in a trust are set to suffer additional tax charges from next April when the tax on income from discretionary trusts rises from 40 to 50 per cent. Discretionary trusts are used by families as a way of passing on money to heirs. As they do not specify the names of the beneficiaries, they are particularly useful for passing on money to unborn grandchildren. In 2006-2007 there were 116,000 discretionary trusts in the UK. (Source: ft.com)

According to the Luxembourg regulator, the decline in fund assets was 24.3 per cent and total assets at the end of last year were EUR1, 559.6bn. However, the number of funds rose from 10,971 to 12,102. Specialised investment funds contributed USD179.6bn in 1,712 funds. This total is down on last year's total (USD205.4bn), but up on that for funds under the previous law (USD104.7bn in 2006). Money market funds rose by 16 per cent to USD561.9bn and ETFs rose by 59 per cent to USD32.0bn due to the diversified range of asset classes. (Source: hedgeweek.com)

India and China mopped up the largest number of private equity (PE) deals in the Asia-Pacific region, accounting for over 70% of all PE investments. PE firms invested around $526 million across 36 deals during the quarter ended March 2009. PIPE (private investment in public equity) deals used to constitute nearly 60% of all deals. Data also indicates that venture capital segment too witnessed a sharp deceleration with venture capital companies investing $44 million over just nine deals during the period. (Source: indiatimes.com)

China's national pension fund, the National Social Security Fund (NSSF), is looking for at least 3-5 private equity funds to help it manage part of its 563 billion yuan ($82 billion) portfolio. The fund intends to reduce its bond exposure and buy more direct equity stakes in state firms this year. But Chairman Dai Xianglong did not say how much money was involved or whether the investment would be in foreign or domestic markets. (Source: reuters.com)

Jersey's funds industry is set to benefit from the new legislation which will offer more choice for fund promoters in how they structure their investment vehicles. The new vehicles will be known as the Separate Limited Partnership and the Incorporated Limited Partnership. Each of the two proposed vehicles will have a separate legal personality; however, the Incorporated Limited Partnership will have the additional feature of being incorporated. Currently, the Jersey limited partnership does not have a separate legal personality and must contract through its general partner. (Source: wealthbriefing.com)

In a landmark appeal in London, Katrin Radmacher, a paper industry heiress worth an estimated £100 million, claims that her estranged husband is seeking to renege on a deal made before they married in which he agreed not to claim against her if they separated. A High Court judge has ruled during their divorce proceedings that Ms Radmacher makes a one-off payment of £5.6 million. If Ms Radmacher succeeds in challenging the award, the ruling will mean that pre-nuptial contracts are legally enforceable in England. (Source: Times Online)

The Scottish Law Commission recommends that where a person dies with no will, their surviving spouse or civil partner should inherit the entire estate, provided its value is less than £300,000. The proposed changes also offer spouses and dependent children greater protection against being disinherited, while co-habiting partners will see their rights to make a claim on an estate extended. If the estate is worth more than the threshold sum, the remainder of the estate will be shared equally with the deceased's children and grandchildren. (Source: scotsman.com)

Jordan is to cut corporate income taxes in various sectors of the economy in order to encourage increased foreign direct investment. The bill will be tabled before parliament to reduce the corporate income tax rate to 12% from the current rate of between 15% and 35%. The proposed rate will apply to most of the economy, with banks, insurance and mining companies subject to a higher 25% rate. Jordan has also underlined plans to simplify the tax system to make it more attractive for investors. (Source: Tax-News.com)

According to the 2009 Tax Misery and Reform Index, Hong Kong was ranked as the friendliest tax regime in the Asia-Pacific region and the third in the world. The score was calculated based on the sum of the corporate, personal, social security and sales tax rates. The results of the survey showed that eight of the 10 least tax-friendly countries or regions were in Europe, with France having the least friendly tax regime. The friendliest tax regime in the world can be found in Qatar, which only taxes corporate income. (Source: china-briefing.com)

Portugal approved a law that for qualified investments made in 2009 (RFAI 2009). RFAI includes a new tax credit equal to 20% (for investments below €5,000,000) or 10% (for investments above €5,000,000) of the investments made during this year, which may be carried forward for four years. RFAI also includes an exemption on real estate transfer tax, property tax, and stamp tax on the acquisition of real estate. RFAI 2009 is limited to taxpayers engaged in the sectors of agriculture, forestry, agro industries, energy, tourism, and manufacturing or extraction industries. (Source: internationaltaxreview.com)

Ministry of Commerce of China released the guidelines for overseas investment and cooperation with 20 countries as part of its strategy to help Chinese enterprises seek overseas opportunities. The country-by-country guidelines provide basic information on setting up an overseas enterprise. It also includes tips on how to foster local relations and where to seek help when in trouble. (Source: China Daily)

The UAE is working on a draft law on foreign investments which will allow more protection to investors. Foreign investors would be provided with guarantees to do business in a fair climate with equal opportunities to profit. The UAE leaders focus on enhancing the role of the private sector which has created an environment conducive to do business. A number of free zones, zero income tax, the flexibility and efficiency of the banking sector and political stability have helped the country to cushion the impact of the global financial crisis. (Source: Khaleej Times)

In a report entitled "Transforming the Worth of Wealth", it identifies eight categories of financial advice service, catering for different levels of personal wealth. At the lower end, it highlights independent financial adviser groups serving the mass affluent. Higher up the ladder, it names independent firms seeking out investors with at least £250,000 in assets. And at the top of the market, it positions private banks and multi-family offices serving the wealthiest families. As the economy weakens, more investors will look to transfer assets to smaller boutiques to get a bespoke service. (Source: ft.com)

The number of China's wealthiest is expected to expand to reach an estimated 320,000 people by the end of 2009, collectively owning RMB9 trillion ($1.29 trillion) in equity assets, a study said. The group of multi-millionaires in the Chinese mainland had expanded to nearly 300,000 in 2008. They grabbed about a total of RMB8.8 trillion in equity. The five richest provinces and municipalities are Guangdong, Shanghai, Beijing, Jiangsu and Zhejiang. (Source: wealthbriefing.com)

Beginning January 1, 2009, 100% foreign owned enterprises ("100% FOCs") in Vietnam may be licensed to engage in the wholesale and retail trade services, except for the trade of a few excluded categories of goods such as pharmaceutical products, oil and sugar. Tractors, motor vehicles and motorcycles are no longer on the list of goods which FOCs are not allowed to trade. Under the previous limitation, many foreign enterprises who were interested in trading with Vietnam had to open representative offices in Vietnam.

Central banks in the US, Europe, Britain and Japan announced an agreement that could provide some $287 billion in liquidity to the Federal Reserve, in the form of currency swaps. The Fed could draw on these lines to provide more liquidity to financial institutions. The Bank of England agreed to provide $44.7 billion in currency swaps, while the European Central Bank said it would provide $108 billion. The Swiss National Bank offered $35 billion while the Bank of Japan said it would provide $100 billion. The agreements would be active through Oct. 30. (Source: nytimes.com)

China identified five key manufacturing cities which will be permitted to conduct international merchandise trade transactions entirely in renminbi once the trial program for such settlement is launched. The five cities are Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan. But Beijing has yet to announce when the program will begin or provide details on how it will work. Renminbi settlement could be cheaper and less risky for Chinese trading companies. (Source: chinaeconomicreview.com)

Singapore's companies are securing $6 billion worth of business ventures in the Middle East which will further strengthen economic ties between Singapore and the region. In the Middle East, the UAE is Singapore's second largest trade partner after Saudi Arabia. The UAE is an important supplier of oil and a major market for Singapore's non-oil exports. In 2008, the total trade between UAE and Singapore amounted to S$14.8 billion. Singapore imported about S$8.9 billion worth of goods from UAE and exported S$5.9 billion worth of goods to UAE. (Source: zawya.com)

Vietnam decided to allow foreign investors to hold at most 49 per cent stake in a public joint stock company in the stock market from June 1 this year. The new ownership rate in unlisted companies is raised from current 30 per cent and equal to the rate in listed ones. However, the holding in local commercial banks is still capped at 30 per cent. This is a move to help push up the over-the-counter market. Foreign investors can also buy a 49 per cent stake in a public securities investment fund or a public securities investment firm. (Source: vcci.com)

【Chief Editors: Cynthia & Lillian 】

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