22 Aug 2020

China’s banks boost NPL disposals in first half of 2020, and there’s more to come

China’s banks were already bracing themselves for an increase in NPLs this year, resulting from the medium-term slowdown in economic growth. But the COVID-19 pandemic has severely …


21 Aug 2020

PBoC recapitalizes Huishang Bank

The state has, once again, been forced to step in to recapitalize a regional lender – a development that underscores how unattractive small local banks, even listed ones, are to private investors. Although the recapitalization and the PBoC’s backing should help to shore up market confidence in the bank …


21 Aug 2020

CSRC issues draft rules for forced stock buybacks for IPO fraud

China’s financial regulators are being forced to create a series of regulations and measures to comply with the revised Securities Law, which went into effect on March 1, 2020. The implementation measures for forced stock repurchases is …


11 Aug 2020

CSRC revises bond issuance regulations to implement switch to registration-based system

The old approvals-based system for selling stocks and bonds was outdated and cumbersome, prone to corruption, and badly in need of changing. The equity market has already made the switch to registration-based IPOs and the bond market is now …


10 Aug 2020

CBIRC releases development plan for property insurers

This is the first time the CBIRC has rolled out a blueprint for the development of the property insurance sector, and as such, it is an acknowledgment of the changing nature of the industry. The goal for overall economic growth has switched from …


10 Aug 2020

PBoC steps up reporting requirements for non-bank payment processing companies

As the fintech sector has exploded in China, oversight of these non-bank payment processing companies has been too lax. As in many areas, the central bank is now playing regulatory catchup and wants to …


10 Aug 2020

Publicly traded REITs move a step closer to launch

The CSRC’s release of the guidelines for setting up publicly traded REITs, combined with the earlier NDRC screening rules for REITs, mean that the long march toward the launch of publicly traded REITs is almost at an end. Applications for pilot projects are expected to…


10 Aug 2020

CSRC widens use of administrative reconciliation system to settle more complex investigations

China’s financial regulators are having to update a string of regulations and measures to comply with the new Securities Law which went into effect on March 1, 2020. The revised administrative reconciliation system is one such example. The complexity of securities and futures regulations paired with the limited investigative resources of the CSRC mean that…


05 Aug 2020

PBoC sets up fourth fintech subsidiary

China’s financial regulators have embraced fintech enthusiastically and are promoting its development aggressively, as they see it as a way to increase competition, lower costs, and bring financing to the underserved population – as part of an inclusive finance strategy. The PBoC’s fintech initiatives do not appear to be directly competing with commercial entities, but rather are part of the central bank’s strategy to…


04 Aug 2020

PBoC official sheds light on how and why Baoshang Bank ended up in state hands

Financial regulators are getting serious about improving corporate governance in the financial sector after a string of scandals and bailouts over the past three years. This is the third high-profile commentary about…


04 Aug 2020

Shenzhen releases details of regulatory sandbox program

Nine major cities in China have now been approved for the regulatory sandbox program. We expect to see…


04 Aug 2020

NDRC specifies application procedures and selection criteria for publicly traded REIT pilot projects

The introduction of publicly traded REITs has been under discussion for more than a year, but its launch has been delayed by regulatory and tax complications. Since April, the rollout of publicly traded REITs has gained added urgency because …


04 Aug 2020

CFETS lowers FX trading fees

The exemption of transaction fees is consistent with China’s efforts to promote the internationalization of the RMB. While it would be easy to assume that this is tied to recent geopolitical developments, our read is that this more of a…


04 Aug 2020

Bank of China chief economist urges country to prepare for financial war

A financial war between the US and China looks almost inevitable given the mood in Washington right now – the only question is how intense it will be. At a minimum, the bar will be raised on…


04 Aug 2020

PBoC holds mid-year meeting, outlines priorities for H2

The PBoC’s mid-year report was mainly a restatement of long-standing priorities, alongside those that have emerged as a result of the COVID-19 pandemic. However, the report contained one phrase that is worth highlighting…


03 Aug 2020

Guangdong sets out detailed plans to implement blueprint for financial integration of the GBA

Authorities have moved quickly to put the GBA masterplan into action since the high-level guidance was published. We will continue to see more…


03 Aug 2020

PBoC extends transition period for compliance with new asset management rules a second time

Since the beginning of 2020, banks have been taking a wait-and-see approach toward compliance with the new regulations in the expectation that the deadline for compliance would be extended. As a result, many have made little progress on…


03 Aug 2020

CSRC outlines policy objectives for the second half of 2020

There was little new in the readout of the CSRC’s meeting – these policy initiatives have been mentioned frequently in the past few months. But the regulator is sending a signal that the authorities are determined to…


03 Aug 2020

SAFE pledges cross-border investment management reform

SAFE’s statement offered little in the way of concrete detail, but it does suggest that additional cross-border investment opening is in the offing. The cautious relaxation of cross-border capital flows has been under way for some time, but has been given…


03 Aug 2020

Supreme People’s Court allows class-action lawsuits for securities disputes

Historically, the government has refused to allow any kind of class-action lawsuit out of concern that such a mechanism could be used to challenge the authorities. This means that if an individual wants to sue a company or local government for wrongdoing and compensation, they must…


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