CEWC signals ramped up economic support in 2025
Beijing’s failure to address insufficient domestic demand since the 2023 CEWC does not inspire confidence. Still, concrete signaling that authorities intend to…
China to launch national elder care insurance scheme
The new funding scheme will provide significant relief for working-age individuals from single-child families, who often bear the sole responsibility of caring for both parents without support from siblings. By alleviating the financial and caregiving burdens…
Politburo signals more aggressive stimulus in 2025
With this meeting, the Politburo has set the overarching macro-policy tone for next year – and the plan is to offer…
Insurance companies raise VC funds
To make insurance companies more comfortable with venture investing, regulators must fully reopen the IPO pipeline, to give VCs clearer exit options. While there have been recent signs of…
Financial regulator tightens property and casualty insurance risk monitoring
The NFRA’s new directives for P&C insurers are straightforward – and regulators’ overarching message is simply that insurers should…
Beijing announces price advantage for made-in-China products in government procurement
Foreign companies with significant local manufacturing presence and domestically sourced supply chains should have no problems meeting the new requirements. However…
PBoC increases use of outright reverse repos in medium-term monetary policy shift
The new reverse repos will help the PBoC transmit short-term interest rate changes across the medium-term yield curve – something the MLF cannot do. We expect…
Central SOEs set to take a greater role in facilitating stimulus spending
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Regulators clamp down on direct insurance companies’ use of “accounting reinsurance”
The stricter regulations on accounting reinsurance will pressure distressed insurers to explore costlier but regulatory-compliant financing tools…
NFRA issues measures expanding AMCs’ role in dealing with bad loans
Under the measures, AMCs can purchase assets that banks haven’t formally classified as nonperforming. We assume that these loans should be categorized as such, but banks are reluctant to do so due to…
China Investment Corporation appoints new Party secretary
On November 13, Zhang Qingsong, 59, was appointed Party Secretary of China Investment Corporation Ltd. (CIC), China’s sovereign wealth fund…
PBoC Governor Pan Gongsheng promises supportive, countercyclical monetary policy
Pan’s report is a timely reminder that China’s monetary policy has entered a new era. For years, the PBoC was reluctant to cut rates…
Finance Minister Lan Fo’an says more substantial fiscal stimulus is set to come in 2025
It’s hard to gauge Beijing’s exact level of concern about the economy. On one hand, officials are signaling that…
MoF announces RMB 10 trillion local government debt relief scheme
The new debt swap scheme will reduce the likelihood of LGFV defaults by allowing local governments to swap high-interest implicit debts for lower-interest official debts. However…
Officials reduce threshold for foreigners to take strategic stakes in listed companies
In recent months, Beijing has repeatedly stressed the need for more “patient” capital in China’s capital markets – long-term investments that…
NFRA deputy stresses risk control and product development at insurance industry conference
Xiao’s cautionary remarks on insurers’ asset expansion appear to contradict his simultaneous call for them to underwrite a variety of retail-centric liabilities and support emerging ventures…
PBoC launches medium-term reverse repos, further diminishing role of MLF
The PBoC aims for changes in the seven-day reverse repo rate – its key policy rate – to result in an immediate adjustment to medium-term rates. It’s hoping these…
October foreign financial institution approvals and specific financial opening developments
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NFRA urges insurers to expand annuity
The NFRA’s initiative to encourage insurers to expand commercial annuities could add diversity to retirement savings options and ease the strain on the state-funded pension system, making retirement incomes more sustainable. However…