CBIRC issues draft notice on banks’ credit card operations
China wants to grow the consumer credit market but is also well aware of the risks, not only of excessive borrowing, as other Asian economies have already experienced, but also of poor and uncontrolled lending practices that could saddle banks with bad debts…
CBIRC issues guidelines for third-pillar pension insurance institutions
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CBIRC cancels restrictions on foreign insurance intermediaries
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CSRC proposes expanding Shanghai-London Stock Connect to include Shenzhen, Switzerland, Germany
The Shanghai-London Stock Connect has been an abject failure since its launch in 2018, unlike the Hong Kong Stock Connect, which has been a roaring success. But London, and capital markets in Switzerland and Germany could become more attractive for Chinese companies…
State Council flags more inclusive finance measures to help small companies
Beijing has a long track record of leveraging its massive state-owned financial system to execute its policy goals. However, despite years of carrots and sticks from the PBoC and the banking regulator, large financial institutions are still reluctant to lend to smaller firms who are seen as more risky borrowers due to their lack of collateral to back loans and lack of credit record…
CBIRC scraps foreign ownership limit on insurance asset management companies
The elimination of foreign ownership caps on insurance asset management companies is a welcome development for overseas insurers with operations in China…
CBIRC issues policy encouraging financial institutions to support innovation, technology self-reliance
Until relatively recently, conversations around how to “end reliance on foreign technologies” have focused on the quality of domestic innovation…
CBIRC issues guiding opinions on standardizing fees for banking services
Arbitrary pricing and fees have been a long-standing problem in the Chinese banking industry. Micro and small businesses as well as vulnerable groups in society, are…
CBIRC, CBA establish a Financial Talent Pool to improve corporate governance at smaller financial institutions
A string of scandals and failures at smaller Chinese financial institutions over the past few years has convinced regulators that corporate governance is a major weak link that poses significant risks to the financial system. Getting new, experienced, and CBIRC-approved blood into troubled local lenders at senior executive and board level should…
CBIRC allows insurance companies to conduct securities lending
Securities lending facilitates short-selling, and while Chinese regulators – like many other regulators – often express concern over the risks associated with the practice, it does play a role in…
PBoC cuts reserve requirement ratio to support banks’ long-term funding needs
The RRR cut has been seen by many as a monetary stimulus. We do not share this view. We see the move as a targeted measure to help banks…
Ant Group, Zhejiang SOE apply for credit reporting license
Only 35% of Chinese citizens have a formal credit history, which has held back the development of consumer finance in the country. The government has tried…
Several Chinese insurers suspend online operations
The CBIRC’s October notice has evidently prompted insurers to take action to rectify practices in their online business and products to comply with the regulatory requirements. We expect…
CBIRC launches rectification campaign in insurance sector after inspections
As the insurance industry is gradually given more leeway in the ways it interacts with China financial markets, regulators want to ensure that…
State Council signs off on commitment system for securities and futures violations
These measures are among many that are being rolled out to comply with the new Securities Law which went into effect on March 1, 2020, with the aim of cleaning up China’s capital markets…
GBA Wealth Management Connect update
Brisk activity on the WMC in its first several months bodes well for the program and for the future of cross-border financial connectivity in the GBA…
PBoC and SAFE to unify Panda bond rules, lift restrictions on remittance of proceeds
Pushing the development of the Panda bond market seems to have shot up the “to-do” list of China’s regulators. This draft comes hot on the heels of the launch of…
BlackRock’s first mainland fund passes initial lock-up period
BlackRock’s fund turned in a solid initial performance against the market. What’s more encouraging for the firm, though, is the high level of…
CBIRC strengthens rules governing insurers’ equity investments and corporate governance
The measures reflect the CBIRC’s continuing concerns about governance and management in the insurance sector after a series of scandals over the past few years…
CBIRC relaxes credit rating requirements for insurers’ investments in bonds
As China’s regulators continue to expand the scope of investment targets for insurance funds…