SAFE holds annual work conference
The overarching goal of Beijing’s financial opening policy is to drive more capital to high-quality development – that means SAFE’s priorities fall into roughly two buckets:…
PBoC holds annual work conference
Everything enumerated in this readout is old news. The PBoC faces a complex environment in 2023…
PBoC convenes Q4 monetary policy meeting
China’s economic woes can’t be fixed with monetary policy. What’s needed is a recovery in consumer sentiment, accompanied by fiscal support for households…
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…
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…
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.
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.
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.
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.
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.
Former HKEX boss to set up Macau exchange focused on trading small business-related financial assets
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.
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…
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…
PBoC cuts RRR by 0.25%
This cut is all about helping banks help the property sector. In recent weeks
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.
Flurry of regulatory measures kicks off private pensions pilot scheme
Developing a robust private retirement savings ecosystem checks multiple policy boxes. It will
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…
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…
November foreign financial institution approvals and specific financial opening developments
Warburg Pincus; Morningstar; BlackRock; Chubb; Neuberger Berman; Manulife
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.