CSRC holds bond regulation work conference
The equity market will be the primary venue for up-and-coming companies to raise capital, but the bond market – which is nearly twice as large – must play a greater role in supporting non-government firms. While the CSRC has made major progress on equity market reform…
Former head of China Merchants Bank charged in corruption probe
Tian is clearly in big trouble, but his actions don’t appear to have caused major disruption to the functioning of the financial system. Xi’s objective is for the Party to have greater oversight, and …
PBoC holds financial markets work conference
Policymakers have said it before, and they’ve said it again here – the regulatory easing on big tech does not mean a return to the high-growth period of the 2010s. Instead, it means that …
Party chiefs removed from top bank and insurer
The Party does have a tendency to remove top state-owned company and government officials without giving a reason. Sometimes removals come before a promotion or retirement while…
Revived Central Financial Work Commission will tighten Party control over financial regulatory matters
This move appears to be a slap in the face to Liu He, and suggests that despite policymakers’ efforts to reduce financial risk, Party leaders aren’t happy with progress. This is also a blow to…
PBoC publishes administrative measures for related-party transactions of financial holding companies
Much of China’s financial regulation in recent years has been a reaction to the aforementioned high-profile scandals that …
PBoC releases wide-ranging measures aimed at further integrating Greater Bay Area financial system
These measures are a playbook to make the GBA the hub for China’s financial engagement with the rest of the world. They also seek to …
PBoC releases Q4 monetary policy report
China’s economic recovery this year depends on a consumption rebound, but the PBoC’s caution adds to concerns that that’s not a shoo-in. With so much at stake, the country’s leaders …
CCDI sets sights on finance, SOEs for 2023
The intensity of Xi Jinping’s anti-corruption campaign has diminished over time, but it has also become more institutionalized, meaning …
CSRC adjusts rules on overseas listings
We may see a near-term rebound in overseas IPO applications, as Chinese companies begin to feel more comfortable raising cash abroad, but…
PBoC, CBIRC revise rules governing banks’ disclosures on risk
Gauging the risk of China’s banks is difficult, not because of a lack of disclosure, but because the data disclosed is often unreliable. For these revisions to improve transparency, regulators must…
PBoC, CBIRC broaden rules on banks’ classification of financial assets to strengthen risk management
Increasing recognition of troubled assets means banks will need to boost provisions and raise more capital. But regulators don’t want …
Chinese banks roll out trials of single yuan/forex account for settlement, remittances
This trial, now in its second year, has several aims – improve the business environment for MNCs in China, make the mainland a more attractive place for MNCs to set up regional headquarters, and promote the internationalization of the RMB…
CBIRC issues updated draft measures on classification of trust companies’ trust business
These proposed regulations are part of the government’s long-running efforts to clean up the once free-wheeling trust sector following a series of high-profile scandals involving trust companies carrying out illicit activities. Trust companies used to be at the center of China’s shadow banking system, helping high-risk businesses unable to get financing elsewhere to raise funds, albeit at a high cost, while evading relevant requirements on risk control…
Hong Kong and mainland fully reopen border
The full reopening of the border is welcome news not only for Hong Kong’s long-suffering business community, but for the thousands that regularly divide their time between the Special Administrative Region (SAR) and the mainland. It is also a highly positive development for Hong Kong’s wealth management and insurance businesses which have historically relied heavily on visiting mainland customers…
CBIRC calls on P&C insurers to enhance scope of risk reduction
China is seriously underinsured, so expanding the scope of insurance coverage is a major priority for the CBIRC. The corporate sector is especially exposed to risk through events such as explosions, major accidents, and natural disasters, and needs to do more to manage and mitigate risks…
CSRC proposes extending registration-based IPO system to all domestic exchanges
This change has been on the cards for years and, while it was already being applied to the country’s three smaller stock markets, the two biggest bourses – the main boards in Shanghai and Shenzhen – were still operating under the old, time-consuming system.
December & January foreign financial institution approvals and specific financial opening developments
JPMorgan; Standard Chartered; Schroders; Principal; Morgan Stanley; Citi; Allianz
CBIRC revises loan management rules to support the real economy
Much of the content in these regulations focuses on expanding lending to science and technology research. These revisions are part of a yearslong regulatory drive to ……
CSRC revises administrative measures for securities and futures companies’ private equity asset management business
The CSRC and other financial regulators are increasingly confident in the success of the campaign to derisk the broader asset management sector and reorient it toward becoming a stable, long-term-focused wealth creator. With a more solid risk management framework in place, we expect to see regulators …