22 Apr 2022

CSRC calls for increased focus on long-term investing

Traditionally, banks have been the main source of funding for China’s economy, with capital markets playing little more than a supporting role. But that’s beginning to change…

22 Apr 2022

NAFMII launches dispute mediation center in Beijing

Beijing is in the midst of overhauling China’s capital markets so that they better serve the real economy. These dispute resolution mechanisms are one key piece of the puzzle…

19 Apr 2022

PBoC cuts RRR by 0.25%

Take the PBoC at its word – this is targeted support for small firms, not broad-based stimulus. The PBoC is reluctant to guide lending rates lower unless bank funding costs drop first…

18 Apr 2022

PBoC approves first two financial holding companies under new regulatory framework

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18 Apr 2022

CBIRC tweaks market entry rules for domestic, foreign financial institutions

The CBIRC’s notice is the latest in a long line of changes responding to the State Council’s requirement to cut red tape, streamline administrative procedures, and delegate power to lower-level or provincial branches of the relevant regulatory body. The key takeaway from this notice is that regulators are making the process of getting a license to do business on the mainland somewhat easier…

18 Apr 2022

CSRC releases notice to stabilize equity markets, bolster sentiment

China’s financial regulators are going all out to stabilize sentiment and expectations among companies and investors amid a worrying economic slowdown fueled by stringent COVID-19 lockdowns and a string of ongoing regulatory crackdowns – most notably in the tech space. Every financial regulator has been told to get behind the FSDC’s campaign to boost the economy and markets, and as the agency responsible for supervising the equity market, the CSRC’s focus is to reassure investors and companies that they hear their concerns and want to help…

18 Apr 2022

Hong Kong moves a step closer to allowing mainland investors to trade stocks in RMB

Mainland money flowing into the Hong Kong stock market under the stock connect program does not escape China’s capital controls. So this plan won’t do much for RMB internationalization, but it will further integrate Hong Kong and mainland markets and eliminate exchange rate risk for mainlanders trading Hong Kong stocks…

18 Apr 2022

PBoC expands digital yuan trial to 11 more cities

The expansion of the pilot program indicates the PBoC’s confidence that testing of the e-CNY has gone well so far. But while the systems and technology underpinning the e-CNY may be ready, it remains to be seen whether consumers are – there’s plenty of evidence that inertia and habit are holding back uptake of the central bank’s digital wallet, even at the pilot stage…

18 Apr 2022

State-owned steelmakers look to settle more iron ore imports in RMB

There’s no mystery behind the desire of both the Chinese government and companies to increase RMB settlement in international trade. Doing business in RMB reduces foreign exchange risk and, more importantly, it helps lower geopolitical risks stemming from financial sanctions that could lock Chinese companies out of key raw material and resource markets…

12 Apr 2022

PBoC lays groundwork for financial stability rainy-day fund

Policymakers are sick of bailing out mismanaged financial institutions with government money – so they’re putting the financial sector on the hook to contribute to the national rainy-day fund…

12 Apr 2022

PBoC convenes Q1 monetary policy meeting

The problem is, however, simply telling businesses, consumers, and investors to “have confidence” might work in the very short term, but the realities of China’s economic challenges will soon come home to roost – especially if officials don’t up their policy support game…

29 Mar 2022

MoF and CSRC issue notice to improve internal controls over financial reporting of listed companies

The government is working hard to clean up China’s capital markets and this notice is part of efforts to restore investor confidence in companies listed on China’s stock markets. Regulators are taking aim not just at the companies, but also at their advisers and intermediaries such as ratings agencies, underwriters and auditors, who have often been complicit in fraudulent activities…

29 Mar 2022

PBoC hands over RMB 1 trillion to the MoF to bolster fiscal income

The state sector has been saving up for a rainy day and now it’s raining. China’s economy faces multiple headwinds in 2022, such as rising unemployment and new waves of regional COVID-19 outbreaks…

29 Mar 2022

CSRC intends to expand pilot program for publicly traded REITs

Regulators have so far failed to give the go-ahead to REITs backed by residential and commercial real estate out of concern they could fuel the property price bubble the government has worked so hard to stamp out…

29 Mar 2022

Government Work Report, NDRC Report highlight plans for continued financial opening

The policy documents that emerged from the Two Sessions reiterate China’s steady and measured commitment to further economic and financial opening. As always, foreign investment into strategic industries and into relatively poorer parts of the country will receive an especially warm welcome as China tries to bolster its domestic competitiveness and address inequality…

29 Mar 2022

Guangdong government outlines key tasks for GBA in 2022

Once again, policymakers have left us with an ambitious outline detailing GBA development but with relatively few details on implementation…

29 Mar 2022

China Banking Association issues proposal to improve financial literacy among consumers

In recent years, much of the work carried out by financial regulators has involved stamping out deceptive practices among financial institutions which prey on the relatively low level of financial literacy among Chinese consumers…

28 Mar 2022

March foreign financial institution approvals and specific financial opening developments

On February 21, Schroders announced that it had received permission from Chinese regulators to set up a majority-owned wealth management joint venture with state-owned Bank of Communications.

28 Mar 2022

Multiple Chinese companies look to raise cash in Switzerland

As the US – by far the world’s largest equity market – becomes less friendly to mainland companies, Chinese firms will get creative on how they raise cash in global markets. There will be an increase in private funding as well as upticks in capital raising in peripheral global markets, like those in Europe and Singapore…

24 Mar 2022

CBIRC issues statement warning consumers on how they use credit

This issue is likely to become more important in coming years. The elderly are often the most vulnerable to these sort of scams, and China’s rapidly aging population…

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