Authorities making progress in recapitalizing China’s biggest commercial banks
The banks currently have relatively high capital adequacy ratios, which they’ve maintained using retained earnings. However, net interest margins are now so narrow that…
Major banks cut deposit rates by 25 bps
Until recently, the PBoC was wary of cutting rates for fear of eroding bank net interest margins (NIMs). But under its new monetary policy regime, the PBoC can trigger a decline in…
PBoC announces 25 bps decline in one-year and five-year LPRs
These cuts won’t stimulate growth. Credit demand is subdued because of weak economic conditions, not high credit costs. Recent LPR cuts have done little to boost…
CSRC gears up to unfreeze IPO pipeline
The CSRC wouldn’t have published this suggestion if it didn’t reflect the agency’s stance. That means we may soon see the window finally reopen for startups…
PBoC conducts first RMB 50 billion swap agreement to boost stock market liquidity
The market is optimistic about the potential for the PBoC’s new stock support programs to lift equity prices. But this excitement won’t last long if…
NFRA revises rules governing banks’ syndicated loans
As China’s property sector consolidates, and Beijing seeks to build industrial giants capable of becoming global champions, the need for large-scale M&A in China will…
Financial regulator emphasizes risk prevention at insurance policy press conference
The NFRA is committed to fostering the long-term, healthy growth of the insurance industry. These compliance measures aim to eliminate…
PBoC and MoF form joint working group to facilitate CGB trading
Yields on long-dated CGBs have fallen sharply this year, driven by weak corporate and household demand for credit…
Central Huijin appoints new president
Central Huijin Investment Ltd. announced that Liu Jiawang, 49, replaced Shen Rujun, 64, as president and vice chairman of the firm…
Chinese authorities chase ultra-rich to pay tax on income from overseas financial assets
Ideally, taxes on the wealthy would be directed toward expanding welfare and services for lower-income groups, which could help boost consumption. However…
Finance ministry says it’s studying additional fiscal measures to boost economy
This year, it looks like additional fiscal resources, which should be announced soon, will be aimed at alleviating local government debt pressures and potentially…
Finance ministry press conferences promises debt relief for local governments, but offers no stimulus
The collapse of land sales has left local governments desperately short of cash, so many have resorted to austerity policies. The central government is now looking to flip the script, but…
Regulators call on banks, funds to monitor WMP redemptions as stocks rally
Chinese savers are desperate for yield. Declining deposit rates and bond returns, the collapse in home prices, and declining stock prices have left households with…
NFRA’s Li Yunze says state plans to recapitalize big six banks
As profits slow, banks can preserve capital by recognizing fewer nonperforming loans (NPLs) and reducing the provisions they hold for writing down NPLs…
PBoC’s support for A-shares could reach RMB 2.4 trillion
These two programs could inject a lot of additional funds into China’s stock markets, but their success depends on how enthusiastically the market embraces them…
PBoC says rate cuts will have neutral impact on bank profits
This is a significant rate cut that will not only lead to a decrease in rates on existing mortgages, but will also result in substantial reductions in…
PBoC rolls out the most sweeping slate of monetary measures to date to revive the economy, but more fiscal support is still needed
Officials are now resorting to their old ways of reviving the economy by trying to directly pump up prices. The measures for monetary loosening are a welcome development…
State Council unveils broadstroke measures to prevent risks and drive growth in insurance industry
Tighter regulatory oversight from both central and local regulators means insurers will face increased compliance checks, even as they are tasked with dedicating resources…
PBoC plans to further reduce borrowing costs
This is the first time the PBoC has published an explainer alongside a credit data release. While we hope this becomes a regular practice, it’s more likely that this is a one-off measure to reassure markets following the weak credit print…
State-owned newspaper front page calls for fiscal, monetary measures ASAP to boost demand
The op-ed is noteworthy because it’s a rare example of direct criticism of government policy in state media. It suggests that certain elements within the government believe the economy could sharply deteriorate without…