Regulators issue final definition of standard credit assets for wealth management products
These latest regulations draw a line in the sand between standard and nonstandard assets that will help eliminate regulatory arbitrage in the asset management sector and prevent banks from investing in …
CSRC chairman urges cross-border regulatory cooperation
Yi’s claim that the Chinese side has never stood in the way of US regulators’ attempts to check the audits of Chinese companies has raised eyebrows as it differs substantially from US regulators’ claims that they have not been allowed to review necessary documents or question auditors about their internal practices. These discrepancies aside, it is clear from Yi’s comments that he is trying to offer some kind of…
State Council allows local governments to use SPBs to recapitalize banks
Employment has become the government’s key concern this year as economic growth has slumped and small businesses are the most important sector when it comes to job creation so keeping them afloat is a top priority. Although policymakers have for several years been working to …
Guo Shuqing urges financial institutions to improve corporate governance
As China continues to open up its financial sector to the world, there is an increasing need for domestic financial institutions to follow a rules-based system in order to win the trust not only of foreign investors but also domestic companies who do business with or invest in financial institutions. Policy makers are well aware that lack of trust, abuse of regulations, and insufficient punishment for transgressions can breed…
NPC Standing Committee reviews first draft of data security law
Data security is a global issue, and China is to some extent playing catchup. The digital economy is booming and China has big plans to drive sectors like artificial intelligence and Big Data, but there are growing concerns about…
CBIRC issues trial measures for evaluation of commercial banks’ financial services to MSEs
China’s financial regulators have been pushing inclusive finance for several years to try and overcome bottlenecks and obstacles that exclude low-income individuals, the rural population, and small companies from the conventional banking system and access to financial services. But they have not been satisfied with…
PBoC issues rules to improve settlement of defaulted bonds
China is working hard to encourage the development of the corporate bond market and the participation of international investors. But rules and regulations have not kept up with the opening of the market and the growing number of corporate bond defaults has…
CBIRC approves insurers to trade treasury bond futures, but only for hedging
China’s government bond market, although the world’s second largest, is still relatively immature and illiquid. As the state’s borrowing needs to grow, the market needs more participants to bring depth and liquidity, and investors need…
PBoC issues rules to clarify standardized bills market to help SME financing
Getting money into the hands of SMEs has been a longstanding problem for the Chinese authorities, and resolving it has taken on added urgency in the wake of the COVID-19 pandemic. The money markets are an important source of …
GBA to pilot Wealth Management Connect
This is the latest in a string of initiatives from the central government to promote the financial integration of Hong Kong and Macau with the mainland through the GBA. As one of the most affluent regions in China, it presents significant opportunities for …
CBIRC orders banks and insurers to conduct internal reviews to uncover misconduct
The CBIRC’s notice is yet another attempt by regulators to unearth misconduct as part of the government’s broader campaign to reduce risks in the financial system, one of the three critical battles identified by …
CSRC plans trial to issue securities licenses to commercial banks
This pilot marks a substantial change in regulatory track, as the law prohibits most domestic commercial banks from offering securities services on the mainland. At present, domestic banks are instead offering …
China releases new, shortened negative list for foreign investment
Shortening the negative list for foreign investment is in line with China’s longstanding policy goal of opening its economy and improving the business environment. But with foreign direct investment declining as a result of US-China tensions …
CSRC lowers barriers to entry for investment in securities firms
Chinese regulators face a dilemma. On the one hand, they want to help securities firms, especially smaller regional brokers, shore up their balance sheets, bring in more capital, and diversify ownership. On the other hand, they also want to prevent the kind of abuse that …
AIA approved to convert mainland branches into wholly owned subsidiary
The mainland market has become an increasingly important part of AIA’s business empire which spans some 18 markets in the Asia-Pacific region including Australia, South Korea, and Vietnam. In 2019, the value of new business in mainland China rose by …
FTSE Russell completes phase one of A-share inclusion
Rising international demand for exposure to Chinese A-shares has driven international index providers like FTSE Russell, MSCI Inc., and S&P Dow Jones Indices to increase their inclusion level in benchmark indices. The shift also serves to correct the …
CBIRC warns trust companies to curb financing products
Once notable for being a relatively free-wheeling area of the Chinese financial system, the trust industry has come under increasing scrutiny and authorities are now looking to more effectively supervise the sector. This regulatory tightening shows that financial de-risking remains financial policymakers’ overriding priority, even as they …
JPMorgan approved to operate first fully foreign owned futures business
JPMorgan is one of dozens of foreign financial institutions seeking to take control of their joint ventures in China after the government announced in November 2017 it would …
MofCom lowers threshold for foreign strategic investment in A-Share companies
Chinese officials are in the process of revising many outdated regulations and laws to catch up with the rapid development of the economy and financial sector. Many of the old foreign investment rules are …
Regulator weighs options to rescue troubled Huaxia Life Insurance
Huaxia Life, which was founded in 2006, is a product of the expansion and lax oversight of China’s financial sector over the past decade. It was one of the fast-moving, innovative insurers that grew rapidly through …