Foreign financial institution approvals and specific opening developments (March 2025)
BNP Paribas; AXA; Hannover Re; AllianceBernstein
Beijing issues action plan to support household consumption
Measures such as raising minimum wages, supporting equity market stability, and increasing rural incomes are likely to have a positive spillover effect on…
Monetary conditions set to loosen in 2025
Beijing is signaling further monetary easing, but within a controlled framework. The NDRC’s language around “lowering required reserve ratios and interest rates at the appropriate time” suggests…
PBoC promises more monetary loosening at appropriate time
Cutting interest rates would provide much-needed relief to Chinese firms grappling with deflation, yet the PBoC remains hesitant to do so, likely over concerns about overcapacity and financial stability. The PBoC has previously warned that…
Beijing to ramp up fiscal spending in 2025
Beijing’s fiscal expansion will provide crucial support to the economy amid mounting economic challenges. However…
State Council offers new guidance on promoting five major financing priorities
Beijing recognizes the limitations in its traditional bank-driven financial system and aims to diversify its financial ecosystem…
Xi Jinping frames weak demand as economic security threat
For the first time, Xi has publicly framed weak domestic demand as a matter of economic security. That marks a major rhetorical shift – and highlights…
Foreign financial institution approvals and specific opening developments
Generali China Insurance; HSBC Life; UBS; AIA Life
Officials release new guidance for prosecuting securities crimes
In China, many retail investors believe only insiders and connected individuals consistently profit from the stock market. By clamping down on securities violations and market abuses, the CSRC aims to…
China’s “bad banks” to get a new owner
The AMCs did not disclose the rationale for the transfers. However, the move aligns with Beijing’s broader strategy, announced in 2023, to…
PBoC tightens offshore RMB liquidity with new bill issuance in effort to manage exchange rate
Markets widely expect that Beijing will let the yuan depreciate to counter tariffs from the Trump administration. However, Beijing is worried that…
Zou Lan appointed deputy governor of PBoC
At just 51 years old, Zou could be a contender for the next head of the State Administration of Foreign Exchange (SAFE), a role often considered a stepping stone to PBoC governorship.
Former finance minister Liu Kun appointed head of NCSSF
Liu’s appointment comes as a surprise. While many of his predecessors at the NCSSF had previously served as finance ministers, they typically assumed the NCSSF role immediately after stepping down from the MoF.
Beijing allocates some provinces a big preliminary SPB quota to jumpstart growth in 2025
The sizable preliminary SPB quota allocation, combined with December’s relaxation of funding restrictions, underscores Beijing’s intent to front-load fiscal stimulus and accelerate infrastructure-driven growth in early 2025.
CSRC encourages tech IPOs
While this is a positive shift, the pace of listings must accelerate significantly to restore investor confidence and…
HKMA launches RMB trade finance liquidity arrangement
The arrangement marks a significant milestone in the development of Hong Kong’s offshore RMB market. The ability to offer longer-term funding at onshore-based rates should help…
January foreign financial institution approvals and specific financial opening developments
Citadel; Standard Chartered; Morgan Stanley
Financial regulators roll out plan to encourage long-term capital to invest in A-shares
Retail investors account for a much higher proportion of Chinese A-share ownership than in the stock markets of developed countries. Beijing blames the high concentration of retail investors (in part) for A-share volatility…
Financial regulators liberalize financial activities permitted in free trade zones
One of Beijing’s reform priorities is the “high-level opening” of China’s economy. The goal is to ensure foreign firms continue to invest in China and retain their presence in the domestic market…
Pilot program allows selected insurers to invest in gold
Granting insurers permission to invest in gold will allow them to diversify their investment portfolios and improve returns, especially given that…