CBIRC steps up regulation of commercial banks’ off-balance sheet activities
Financial institutions’ off-balance sheet activities have long been a concern for China’s regulators and policymakers, who have been on a mission to rein in shadow banking and defuse financial risks since 2017 when a major crackdown began after a string of corporate scandals. Poorly regulated and opaque off-balance sheet activities tend to be more risky than on-balance sheet lending and could pose a systemic risk to the financial system.
MoF releases draft regulations to standardize financial accounting for data assets
As data continues to account for an increasing proportion of firms’ assets, developing a better, more uniform valuation system is critical. These rules are an early step in standardizing the financial treatment of data and will lay the groundwork for future financial, legal, and economic frameworks.
Eight ministries jointly release fintech pilot plan for Yangtze River Delta region
The YRD is not only one of China’s main industrial hubs, it is also home to cities that are leading the way in fintech – Hangzhou, for example, is the home of e-commerce giant Alibaba and its fintech affiliate Ant Group, which operates the country’s biggest mobile payment platform. So, it’s no surprise that policymakers have turned to the region to experiment with and develop financial tools to support the country’s engines of technological innovation.
CBIRC tightens rules on use of term “bank” in organization names
Our natural assumption was that the CBIRC was potentially after fintech services abusing the term “bank.” We thought this might include pioneering institutions like Tencent’s WeBank, which is a real registered bank. However, such firms are apparently not the primary target of this notice.
Former HKEX boss to set up Macau exchange focused on trading small business-related financial assets
Charles Li sure knows how to speak Beijing’s language – the Macau exchange may not have been devised by policymakers, but it certainly aligns with their objectives. To that effect, the exchange will be a novel trial balloon vis-à-vis Beijing’s push to expand capital access for small mainland firms.
CBIRC revises corporate governance measures for financial institutions
As part of a broader derisking campaign that began several years ago after a string of scandals involving banks and insurers, regulators identified corporate governance as…
CBIRC tightens regulation of financial leasing firms
This notice is part of Beijing’s ongoing efforts to identify and defuse risks in the financial sector. Financial leasing has traditionally been…
PBoC cuts RRR by 0.25%
This cut is all about helping banks help the property sector. In recent weeks
CSRC approves launch of industrial silicon futures on Guangzhou Futures Exchange
Polysilicon is a crucial raw material for solar panel production and silicon is key for making semiconductors, which are in just about every electronic device you can think of.
Flurry of regulatory measures kicks off private pensions pilot scheme
Developing a robust private retirement savings ecosystem checks multiple policy boxes. It will
PBoC, SAFE release notice on facilitating Panda bond issuance
Expanding the Panda market is a key component to Beijing’s RMB internationalization goals. For the yuan to become an international currency, foreign firms must be…
Top financial policymakers deliver speeches at annual Financial Street Forum
The top medium- and long-term priority of China’s financial policymakers is to support the real economy, especially sectors of strategic importance. In the near-term…
November foreign financial institution approvals and specific financial opening developments
Warburg Pincus; Morningstar; BlackRock; Chubb; Neuberger Berman; Manulife
CBIRC releases rules on statistics for green insurance
China has committed to ambitious carbon emissions targets and is fully focused on transitioning to a green economy. The financial sector is going to play a key role in achieving these objectives.
CBIRC announces list of financial institutions eligible to participate in China’s private pension system
While China’s rapidly aging population makes the development of the third pillar of the pension system an increasingly urgent priority, regulators are approaching its rollout with characteristic caution. The initial cohort of financial institutions have been carefully screened for their financial stability and business practices to ensure that the system’s debut is as smooth as possible.
Hengqin economic zone offers incentives to attract financial institutions
Financial institutions are the latest targets of the Hengqin zone. In August and September, the Hengqin government announced schemes to attract semiconductor companies and listed companies respectively.
Regulators adjust rules governing contributions to insurance bailout fund
Following a string of high-profile scandals at major insurers in recent years that required bailouts, regulators want to ensure that the industry’s rescue fund is fit for purpose, adequately funded, and is endowed with rights befitting its role. By requiring bigger pay-ins from riskier insurers, the CBIRC can reduce the risk of moral hazard and incentivize riskier firms to get their balance sheets in order.
CBIRC issues measures to improve insurance services for catastrophic events
As climate change exacerbates the frequency and intensity of natural disasters, policymakers want to ensure that sufficient financial infrastructure is in place to mitigate human and economic damage. This includes ensuring that insurance claims are handled efficiently and professionally.
PBoC, SAFE release rules to facilitate foreign investment in domestic bond market
China has been working hard to make its RMB 138.2 trillion bond market more attractive to FIIs over the past two to three years, removing obstacles that investors have complained hinder their ability to trade and make the market less appealing. But in spite of Beijing’s efforts, FIIs have been pulling money out of the market this year amid concerns that economic growth is declining, mainly as a result of the government’s zero-COVID policy.
CBIRC releases draft revisions to banking supervision law
China is in the midst of a major overhaul of laws and regulations that govern the financial system to ensure they keep up with the significant changes that have taken place over the past decade. The law governing the People’s Bank of China is being revised, and new laws or regulations in areas such as futures and derivatives, foreign-funded banks and data protection have been promulgated or are in the works.