China to restart GDR approvals with new rules
The CSRC paused GDR issuance with the intention of shutting off an arbitrage loophole as opposed to reversing course on cross-border fundraising…
Regulators set caps on some bank deposit rates in latest move to discourage saving
Beijing wants to achieve multiple goals simultaneously, and is hoping for less money sitting in digital bank vaults and more cash flowing into consumption and the capital markets, lower borrowing costs for companies, and protection of banks’ net interest margins and profits…
Central Financial Commission names new deputy director
We don’t know a lot about Wang, but will be following him closely in his new position of power.
PBoC, SAFE introduce plan to expand currency exchange pilots for MNCs
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
PBoC’s forex committee hints at more active currency management
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
Li Yunze, head of new financial regulator, outlines key tasks
Li’s coming out swinging. His brief speech was heavy on oversight and ideology and light on issues like reform and opening. China’s new financial supervisory…
PBoC releases Q1 monetary policy report
We agree that with the PBoC that worries about deflation are overblown. Consumption is taking longer to recover than was widely expected earlier this year. Given that, we’re now expecting authorities to …
CSRC inaugurates listing of SSE STAR Market 50 ETF options
Greenlighting more derivative products like this is an important part of efforts to achieve Beijing’s goal of building a more sophisticated capital market dominated by long-term, institutional investors. This product also …
Former Sichuan vice governor Li Yunze became Party secretary of the newly established financial regulator NFRA
Li’s appointment is a big deal. Ensuring the stability of China’s financial system is one of Beijing’s top priorities. 52-year old Li will be an influential figure in the financial policy space for the next decade…
April credit data shows borrowing falters as households deleverage
This is a shockingly bad credit print. The numbers were around half consensus forecasts. A pullback…
CSRC releases work plan to promote issuance of high-tech bonds
Policymakers have for years tried to expand the role of direct financing and wean the economy off its traditional dependence on indirect financing provided by the banking system, which seems incapable of allocating financial resources adequately to the government’s priority areas.
19 Hong Kong-listed firms have applied for their stocks to trade in RMB
Traditionally, Hong Kong was a gateway for foreigners into China. Its future lies in being a gateway for Chinese capital to the world.
Swap Connect expected to launch this quarter
The Swap Connect will increase the international appeal of China’s financial markets by giving foreign investors a way to hedge their exposure to Chinese fixed-income products.
April foreign financial institution approvals and specific financial opening developments
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
CSRC issues draft of revisions to regulations on futures industry professionals
This is yet another regulation aimed at fleshing out the broad regulatory framework set out in the Futures and Derivatives Law. Derivatives are an increasingly important and rapidly expanding part of China’s financial system,
CBIRC issues rules to tighten regulation of trust companies’ satellite branches
This notice is part of a broader effort by the CBIRC to overhaul the trust industry, improve risk control and governance, and strengthen regulation after a series of scandals, defaults, and illegal activities that left investors nursing heavy losses. After years of deliberation, the commission in March released the final version of rules on the classification of trust companies’ trust businesses…
CBIRC tells insurers to reduce rate of return on new products
Falling interest rates have raised regulators’ concerns that insurance companies could be exposed to losses from negative interest rate spreads. There’s also concern that competition for new business may drive some insurers to offer policyholders higher returns than they can earn on their investments…
CSRC announces delisting of two tech firms for IPO fraud
If Beijing wants households to put more of their savings into equity markets, building trust in those markets is key. With the registration-based IPO system now rolled out to all mainland boards, regulators want …
Industry body reportedly calls on banks to cut deposit rates
The elevated savings rate is a symptom of households’ low confidence about the future and expectations that capital or property markets will not provide better returns. A modest decline in deposit rates, however, is unlikely to …
PBoC offers reassurance about divergence in M1 and M2 growth
The M1-M2 divergence signals that some of the money being created isn’t being used. Banks are under pressure to lend, but there aren’t enough takers, so they may be dishing out loans to accommodating state-owned enterprises who then just sit on the money. The PBoC may …