19 Jan 2023

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…

19 Jan 2023

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…

10 Jan 2023

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.

10 Jan 2023

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.

15 Dec 2022

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.

14 Dec 2022

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.

13 Dec 2022

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.

09 Dec 2022

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.

08 Dec 2022

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…

08 Dec 2022

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…

06 Dec 2022

PBoC cuts RRR by 0.25%

This cut is all about helping banks help the property sector. In recent weeks

06 Dec 2022

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.

06 Dec 2022

Flurry of regulatory measures kicks off private pensions pilot scheme

Developing a robust private retirement savings ecosystem checks multiple policy boxes. It will

05 Dec 2022

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…

02 Dec 2022

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…

30 Nov 2022

November foreign financial institution approvals and specific financial opening developments

Warburg Pincus; Morningstar; BlackRock; Chubb; Neuberger Berman; Manulife

25 Nov 2022

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.

25 Nov 2022

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.

25 Nov 2022

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.

24 Nov 2022

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.

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