Yi Huiman defends CSRC’s regulation of STAR Market, calls for international regulatory cooperation
The CSRC has come in for a lot of criticism domestically over the new registration-based IPO system, which had been touted as a significant step forward in a much-needed overhaul of domestic stock markets…
Pan Gongsheng outlines forex priorities at Lujiazui Forum
It’s rare to get any surprises from speeches regulators give to forums like this, but it’s still worth paying attention to what they say as well as what they don’t say…
BlackRock awarded license to start operating mutual fund business
It’s been a busy few months for BlackRock, as the world’s largest mutual fund manager has expanded its footprint in the Chinese market both through tie-ups with other financial institutions and independently. Marketing and distribution could present a headache for BlackRock’s mutual fund business, although it’s doubtless done its research over the potential pitfalls…
FSDC adds weight to crackdown on cryptocurrencies, warns of risks from speculation
Stability-obsessed Chinese regulators are continually being forced to play a cat-and-mouse game with emergent financial technologies…
JPMorgan applies to take full control of China securities joint venture
JPMorgan has looked to solidify control of its China-based futures and mutual fund businesses…
DBS receives license to start operating securities joint venture
China remains an attractive growth market for multinational investment banks…
CBIRC issues draft code to improve corporate governance at financial institutions
On June 8, the China Banking and Insurance Regulatory Commission (CBIRC) issued the “Corporate Governance Code for Banking and Insurance Institutions,” aimed at improving corporate governance at banks and insurers, effective immediately…
PBoC publishes draft of new Anti-Money Laundering Law
On June 1, the People’s Bank of China (PBoC) released a draft revision of the Anti-Money Laundering (AML) Law, which is open for public comment until June 30…
CBIRC flags plan to allow insurers to issue perpetual bonds
On May 12, the China Banking and Insurance Regulatory Commission (CBIRC) issued a statement on its Weibo social media account discussing the performance of the insurance sector in 2020 and outlining key tasks for the remainder of 2021…
Goldman Sachs, ICBC get approval for wealth management tie up
On May 25, the Industrial and Commercial Bank of China Ltd. (ICBC) said that it had received preliminary approval from the China Banking and Insurance Regulatory Commission (CBIRC) to set up a wealth management joint venture with Goldman Sachs Group Inc…
CBIRC exempts locally incorporated foreign banks from rules on large exposure caps related to parent companies
This notice is part of a broader move by China’s regulators to bring their regulatory frameworks and practices more into line with international standards. The new exemption for locally incorporated foreign banks aligns China with the standards introduced by the BCBS in 2014 in its supervisory framework for measuring and controlling large exposures…
INE set to introduce first yuan-denominated crude options available to overseas investors
The introduction of crude options contracts and allowing overseas institutions to trade is yet another measured step in China’s financial opening. Insufficient access to derivatives has long been a complaint of foreign investors looking to hedge their exposures…
CBIRC announces pilots to encourage private pension provision
China has been talking about overhauling its creaking pension system for at least 20 years, and while there have been changes, they have been far too cautious and limited to tackle what is an increasingly urgent problem. The government has been slow to open up the corporate annuity market and even slower to develop the personal pensions market, which is now becoming a top focus…
BlackRock wealth management joint venture cleared to open for business
Foreign asset managers are slowly establishing a presence on the mainland. As of now, that presence remains small…
CBIRC issues new licensing system for financial institutions
On May 7, the China Banking and Insurance Regulatory Commission (CBIRC) issued the “Banking and Insurance Institution Licensing Administrative Measures” which updates regulations on its financial licensing system with the aim of consolidating and simplifying it…
Guangdong government highlights financial development measures for GBA
On April 25, the Guangdong provincial government released a draft of the province’s “14th Five-Year Plan (2021-2025) for Economic and Social Development and the Long-range Objectives Through the Year 2035.” The draft plan outlines several goals related to the financial development of the Greater Bay Area (GBA) in general and of Guangdong province in particular…
NPC deliberates Futures law
As in other areas of its financial markets, China is trying to balance greater liberalization of derivatives trading with sufficient regulation to maintain overall financial stability and offer ample protection to investors. The draft Futures Law is an attempt to put guardrails in place to guide the further development and opening of the derivatives market…
Beijing expands QFLP program
The expansion of Beijing’s QFLP program is part of a broader push to open up the services sector in Beijing. In September 2020, the State Council approved a plan, formulated by the municipal government and the Ministry of Commerce, to set up demonstration zones and pilot programs to further open the capital’s services sector. The plan included liberalizing the scope of public market investment through the QFLP pilot program…
PBoC, NDRC and CSRC release unified catalogue of industries and projects eligible for green bond funding
The updated Catalogue is a major step forward in implementing China’s climate change commitments to reach peak emissions by 2030 and carbon neutrality by 2060. Bringing the three regulators together behind one set of classifications and rules is no mean feat –– having one single reference point will have a significant impact on the domestic green bond market and play a key role in helping Beijing ramp up its support for green finance…
PBoC releases updated anti-money laundering measures
Aside from complying with the requirements of the FATF, the PBoC’s efforts to upgrade and improve anti-money laundering regulations are also key components of the government’s financial derisking campaign and efforts to combat financial crime. The inclusion of nonbank financial institutions (NBFIs) in the regulations is aimed at addressing the criticisms in the FATF’s evaluation report, and ensuring that they are subject to the same level of regulatory supervision as banks and have adequate internal control systems and risk management policies in place…