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 …
CBIRC names and shames four insurers for inaccurate solvency data
The amount of money involved in these transgressions isn’t significant – for AIA it adds up to less than RMB 50 million, which wouldn’t have much impact on its overall solvency ratio. But that’s not the point – this is all about compliance and ensuring staff know exactly what they are supposed to be doing under the new C-ROSS II framework…
CBIRC seeks public feedback on new rules for country risk management of banking institutions
Given Chinese banks’ increasing involvement beyond China’s borders, particularly in countries that have relatively unstable political and economic contexts, regulators in Beijing see it as imperative that banks shore up the way they evaluate country risk. This is yet another measure aimed at bringing China’s financial regulations more closely in line with international standards…
CSRC issues administrative measures for the securities brokerage business
China’s securities sector has a bad reputation among domestic investors due to scandals involving a range of bad behavior, including misleading sales tactics, fraud, and unethical conduct. To be sure, regulators themselves are partly to blame because of their relatively lax oversight and weak protection of investors’ rights…
CBIRC releases notice on grading system for foreign bank branches
China’s financial authorities are working through a raft of regulations to bring the country’s financial supervision into line with international practice and standards. These updated measures on foreign bank ratings are part of this upgrading…
Shenzhen and Singapore exchanges list two funds under ETF link program
This is another small step to opening up China’s financial markets and attracting more foreign capital into the country, as well as deepening links with other offshore markets and providing more investment options for holders of offshore RMB. It’s notable that China’s offering is specific to tech stocks…
CBIRC issues draft opinions to encourage the development of inclusive insurance
Despite years of effort to develop the insurance industry, China remains severely underinsured. This poses a very real danger to broad swathes of the population and threatens to erase the hard-won gains of the poverty alleviation campaign…
CBIRC releases draft measures aimed at standardizing commercial banks’ custody business
As China’s financial system grows and becomes increasingly complex, it is critical that policymakers put the legal framework in place to underpin that system. As such, over the past few years, financial regulators have released numerous measures like these aimed at solidifying various regulatory frameworks and bringing them more closely in line with international practice…
Shenzhen Stock Exchange launches trial of GBA bond platform
This new GBA Bond Platform (not to be confused with the GBA Bond Connect) represents yet another effort to increase financial connectivity in the GBA region and tap into sources of cross-border funding. The fact that the pilot involves RMB products issued in Hong Kong suggests the initiative is also linked to efforts to internationalize the Chinese currency. We will continue to monitor the platform’s development…
CBIRC issues new rules on consumer protection for banking and insurance institutions
These measures are the latest in a long line of regulations issued by the central bank and the CBIRC to improve protection for consumers of financial products and ensure that the business practices of banking and insurance institutions do not take advantage of their customers. Financial literacy in China is weak and consumers have frequently fallen victim to unscrupulous sales practices and promises of fool-proof investments, not to mention the illegal collection and sale of personal data…
CBIRC chairman pens essay on financial sector reform
Guo is irreplaceable. During his tenure at the CBIRC, the hard-charging regulator made China’s financial system a far less risky place…
CBIRC holds annual work conference
The CBIRC and the rest of the financial regulatory apparatus do deserve kudos – as they often remind us – for their achievements over the past half-decade. They’ve cleaned up serious financial risks – with, for the most part, minimal disruption to the economy…
PBoC, MofCom release notice on boosting cross-border RMB use
Internationalizing the RMB is a key goal for Beijing, as it means…
PBoC, CBIRC call on major banks to boost support for real economy
The PBoC and CBIRC’s overarching message isn’t all that new. They aren’t asking banks to lend more in 2023, per se, but to lend smarter…
SAFE holds annual work conference
The overarching goal of Beijing’s financial opening policy is to drive more capital to high-quality development – that means SAFE’s priorities fall into roughly two buckets:…
PBoC holds annual work conference
Everything enumerated in this readout is old news. The PBoC faces a complex environment in 2023…
PBoC convenes Q4 monetary policy meeting
China’s economic woes can’t be fixed with monetary policy. What’s needed is a recovery in consumer sentiment, accompanied by fiscal support for households…
PBoC governor Yi Gang lays out vision for creating a modern central banking system
None of this is new, but underscoring the PBoC’s commitment to becoming a more modern central banking institution is very important. It’s all part of the unsexy process of detailed financial reform that is always happening behind the scenes in China…
PBoC extends CNY trading hours
More than 60 offshore banks and other financial institutions are CFETS members. Longer trading hours mean they can trade CNY – rather than offshore CNH – at more convenient times…
Lawmakers review draft of Financial Stability Law that sets up guarantee fund to prevent systemic financial risks
The central government and PBoC have so far borne the lion’s share of the cost of bailouts and want the financial sector and local governments to shoulder more of the burden. But it will be a tough sell.