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…

24 Mar 2022

China’s stock exchanges issue further fee reductions

Given that the Shenzhen exchange has extended its fee cuts to the whole country – from originally just Tianjin, Henan, and Shaanxi – there’s a good chance both the Shanghai and Beijing exchanges will follow suit at some point this year…

23 Mar 2022

FSDC meeting stems market turmoil, leaders promise policy consistency

The FSDC is doing what it can to stop the stock market slide, and thus far its actions have been largely successful. However, there is a substantial difference between short-term rhetoric aimed at stabilizing markets and the longer-term reforms necessary to bring these pledges to fruition…

22 Mar 2022

CBIRC to tell pension insurance firms to clean up risky, short maturity products

The regulation essentially asks for pension insurers to return to their roots: providing vanilla retirement savings products. For now, regulators’ objection to personal pension guarantee management products seems to mainly be about their short maturity rather than how they’re invested…

18 Mar 2022

CBIRC releases implementation rules covering reserves of non-life insurers

As China’s insurance sector continues to grow, developing a robust framework for ensuring companies have sufficient reserves will be crucial to overall financial stability. An insurer’s failure to meet payouts on the policies it has underwritten could have severe knock-on effects throughout the financial sector and could damage consumer confidence in insurance more broadly…

18 Mar 2022

China Everbright appoints new chairman

On March 4, financial media reported that Wang Jiang, president of China Construction Bank Corp. (CCB), had been tapped to serve as chairman of China Everbright Group Ltd…

18 Mar 2022

CBIRC issues measures on agricultural insurance underwriting and claims settlement

China’s leadership is obsessed with food security as well as with rural revitalization and increasing farmers’ incomes. Developing robust agricultural insurance is an obvious (and World Trade Organization compliant) way to help farmers, insulating them from both bad harvests and market volatility…

17 Mar 2022

NPC work reports show derisking and financial sector development remain priorities

The twin goals of derisking and continued financial sector development are interconnected. Cracking down on shadow finance and reducing local governments’ reliance on debt-fueled growth have been major policy pillars of Xi Jinping’s second five-year term (2017-2022)…

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