Politburo meeting pledges economic support measures
As China continues to deploy stringent lockdown measures to contain the Omicron variant of COVID-19, hopes for achieving the 5.5% growth target put forward in March have all but vanished. Even so, policymakers remain reluctant to resort to broad-based stimulus and are instead looking for ways to support beleaguered industries and businesses at the margins…
John Lee appointed as the next Chief Executive of Hong Kong
We can expect that under John Lee, the Hong Kong government will continue to push for further economic integration with mainland China. However, the change in administration in Hong Kong will probably not have a major impact on the broader development of the GBA, since much of the driving force behind GBA integration is coming from the central government and Guangdong provincial government rather than from the Hong Kong special administrative region…
CBIRC issues revised rules on entrusted investment of insurance funds
These measures are part of the CBIRC’s long, slow slog to overhaul its regulatory regime, improve oversight and risk management, and for the insurance sector specifically, take measures that will help companies increase the return on the assets they invest and consequently the return they offer policyholders. As the government increasingly looks to the industry as a vehicle to invest the savings of individuals for the long-term, it has been gradually relaxing controls on the types of assets insurers can invest in and opening investment to specialized asset managers…
CBIRC allows insurance funds to invest in broader range of financial products
The CBIRC has been gradually relaxing the type of assets insurance funds are allowed to invest in. Previously restricted to investments directly related to the insurance industry, long-standing constraints on investment have hampered the efficient utilization of funds and the industry’s growth…
Wang Liang appointed president of China Merchants Bank
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
CSRC revises rules on supervision of mutual fund managers
China’s mutual fund market has seen tremendous growth over the past few years — assets under management amounted to RMB 26 trillion in the first quarter of 2022, nearly double the figure at the end of 2018. With new mutual fund managers and investors entering the market as regulators encourage competition, supervision needs to keep pace to ensure investors’ interests are protected and that the industry develops in an orderly manner that minimizes risks and the opportunity for malfeasance…
CSRC pledges more support for companies hit by pandemic to tap capital markets
The ongoing, draconian lockdown measures in China’s primary financial hub have central authorities concerned about the health of the nation’s listed companies. The CSRC’s measures to ease administrative and regulatory burdens on virus-hit industries are yet another effort by central authorities to prop up the economy amid a punishing epidemic prevention and control regime…
CCDI investigates head of PBoC monetary policy department for corruption
Sun is one of the biggest heads to roll since the CCDI launched an inspection of 25 financial regulatory agencies, state-owned banks, insurers, and state-owned asset management companies (“bad banks”) in September. The campaign took a while to get rolling, but more than 40 officials have since been probed or penalized – including 17 in April alone…
May foreign financial institution approvals and specific financial opening developments
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
NDRC and MofCOM expand the Catalogue of Industries Encouraging Foreign Investment
As China continues to move its economy up the value chain, high-end manufacturing and production-oriented services will continue to be a priority for foreign investment, as will China’s generally less developed western and northeast regions. The 2022 catalogue expansion shows that China still has an appetite for FDI especially when it dovetails with major national development strategies…
SAFE to launch more derivative instruments for forex market
Policymakers need to make China’s forex market a lot more sophisticated if they want to internationalize the RMB. Offering a greater number of derivative instruments is a move in the right direction and brings China more into line with other major forex markets…
CSRC issues draft cybersecurity measures for securities and futures companies
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
PBoC and CBIRC issue notice on non-capital TLAC bond issuance for G-SIBS
This is premium content. Subscribe for access, or login below. Username or Email Password Remember me Lost your password?
CBIRC reviews insurance sector solvency work in 2021
The CBIRC has been working hard to raise standards and supervision of an increasingly important sector, but one that’s had its share of scandals (e.g. Anbang Insurance, Forsea and the universal life product debacle).
CBIRC releases draft rules on internal controls for wealth management companies
Containing financial risk has been a primary focus for Beijing since Xi Jinping designated it as one of his “three tough battles” in 2017 – along with…
CSRC issues measures to improve capital markets and support the economy
These measures are mostly about providing short-term support for the economy. Still, the measures aimed at property developers and infrastructure
PBoC introduces multiple relending quotas, plans more
These are “kill two birds with one stone” measures. The PBoC is reducing funding costs for some of Beijing’s highest priority economic segments and
PBoC releases Q1 monetary policy report
The change in formulation around monetary policy isn’t a surprise – the PBoC has been signaling its new priorities for a while now. But, despite clearly increased urgency
NPCSC passes Futures and Derivatives Law
Given the scale and speed at which China’s financial system has grown over the past decade, oversight has often struggled to keep up with developments on the ground. We read Futures and Derivatives Law as Beijing’s blessing of the accelerated expansion of the futures and derivatives market.
CSRC releases opinions on developing publicly offered funds industry
2022 has seen drastic daily swings in China’s equity markets, with the biggest mainland exchanges – Shanghai and Shenzhen – both down over 20% on the year. These reforms certainly won’t stop the current dip, but policymakers hope they’ll stem this type of destabilizing volatility down the road…