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.
PBOC researcher lays out next steps for financial institutions
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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
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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 …
CSRC starts taking over supervision of enterprise bonds from NDRC
This change makes total sense and it’s been a long time coming. It will help reduce risk by eliminating the potential for competition between regulators keen to expand the part of the bond market under their purview. The next major step is to …
CBIRC official highlights efforts to improve risk management at P&C insurers
As with many facets of China’s financial system, regulators are focused on ensuring that property insurers are run properly, have adequate financial strength, and …
CSRC issues draft revisions to rules on regulation of securities companies
These revisions are part of a larger push within the financial regulatory apparatus to modernize outdated legal frameworks and rationalize and harmonize disparate pieces of regulation. In this and other regulatory updates and revisions there is a clear emphasis on building out better compliance capacity and corporate governance structures…
State Council releases opinions aimed at reforming listed company board director system
Top leadership has repeatedly emphasized their desire to see mainland capital markets transformed into effective channels for funding science and tech innovation. To get there…
Yi Gang reiterates PBoC’s aim to loosen control of RMB exchange rate
Given the urgency with which the central bank is pursuing both RMB internationalization and interest rate reform, we expect the managed float will be abandoned and replaced by…
PBoC convenes Q1 monetary policy meeting
Doing more to channel financing to the private sector could go a long way toward stimulating growth – and top leadership, notably Premier Li Qiang, has…
First batch of main board registration-based IPO companies begin trading
Letting the market shoulder the IPO information disclosure and pricing burden will make China’s capital markets more efficient, but the move may not be quite as impactful or free market as it sounds…
NDRC releases catalogue of encouraged industries for Hengqin Cooperation Zone
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CBIRC announces trial program to convert life insurance policies into long-term care benefit plans
China’s aging population is increasingly putting strain not only on the country’s creaking pension system, but also on the generation of children born during China’s One-Child Policy era. The pressure on young adults to either care for their aging parents on their own or to find alternative solutions to ensure that they receive adequate care risks becoming both an economic liability and a thorny social problem…