23 Dec 2019

Nomura securities joint venture begins operation

Nomura has said the Shanghai-based joint venture will operate brokerage, investment consulting, proprietary trading, and asset management businesses within the next four to five years, and intends to…

23 Dec 2019

Another CBIRC regulator taken down over Baoshang Bank

Jia is the latest regulatory official from the Inner Mongolia CBIRC office to fall in the wake of the Baoshang Bank takeover. Investigations have uncovered widespread corruption surrounding the …

21 Dec 2019

China’s digital currency continues to move forward

These are the latest comments by a PBoC official to try and squash speculation that DCEP will be similar to a crypto-currency like bitcoin. That may be a disappointment for crypto enthusiasts, but it is …

20 Dec 2019

Amundi approved to launch wealth management joint venture

The joint venture aims to leverage Amundi’s extensive international investment management capabilities and the BoC’s branding and distribution channels to serve …

20 Dec 2019

BlackRock, Temasek agree to wealth management JV with China Construction Bank

These are just the latest foreign companies to jump on the wealth management bandwagon in China. CCB is one of the big four state-owned banks, and, as we have highlighted in previous monitors, it has established …

20 Dec 2019

CBIRC considers removing limit for banks to sell bonds to insurers

Lowering the criteria for banks to sell perpetual bonds to insurance companies should provide a bigger market for the debt as the government encourages banks to …

19 Dec 2019

PayPal completes acquisition of Chinese payments company

As we commented in our previous analysis of this development in October, the Chinese online payments market is dominated by domestic firms such as WeChat Pay and Alipay. Foreign payments firms will face an uphill battle trying to …

19 Dec 2019

Hengfeng Bank to receive RMB 100 billion bailout

Hengfeng is yet another small regional lender that’s effectively being bailed out by the state, a sign of mounting problems in the banking industry exposed by …

19 Dec 2019

Shenzhen issues “socialist pilot zone” action plan

Despite nominally being an elaboration on the State Council’s original policy, the new work plan is still light on specific information as to what shape these reforms might take. However, Shenzhen’s development as a …

18 Dec 2019

JPMorgan wins business license for its majority-owned securities company

In recent months, a number of foreign banks have applied for or received permission to open majority-controlled securities businesses or to …

16 Dec 2019

SMBC Nikko Securities to open wholly owned China subsidiary

As China’s financial opening proceeds, a consistently growing number of foreign firms are looking to take advantage of the relaxation in various foreign ownership rules. As Shimizu’s comments show …

13 Dec 2019

CSRC approves Ant- Financial, Vanguard joint venture

The joint venture will look to provide investment services and advice to individuals in China, which comports with authorities’ push for more inclusive financial services. As with the asset management JVs …

13 Dec 2019

AXA takes full control of AXA Tianping P&C

There have been no foreign equity caps on property and casualty insurance since 2007, so this deal is not directly related to the opening measures we have seen over the past 21 months. Nevertheless, this is a high-profile deal that …

13 Dec 2019

JPMorgan set to take majority stake in futures JV

Caps on foreign ownership of futures companies were meant to be scrapped on January 1 this year – according to a CSRC announcement in October 2019. However, it appears as though this deadline…

13 Dec 2019

Central Economic Work Conference points to policy continuity

Regulators are sticking to the economic policy path laid out in recent years.

11 Dec 2019

Intesa Sanpaolo receives fund distribution license

According to the terms of its newest license, Yi Tsai will distribute both publicly offered funds and privately distributed funds from the product range of Penghua Fund Management…

11 Dec 2019

MoF rolls out new ownership transfer rules for SOE FIs

While it may be tempting to read this development as a signal that the government is tightening its grip over certain financial institutions, we view this move as …

10 Dec 2019

PSBC debuts on the Shanghai Stock Exchange

PSBC’s tepid first-day performance was expected – as the offering price was nearly 20% above the company’s Hong Kong-listed shares. The high price was in part due to …

09 Dec 2019

CBIRC reviews progress of opening measures

The CBIRC has indeed made significant progress on financial opening this year.

09 Dec 2019

PBoC launches electronic information exchange system for letters of credit

The new system aims to address long-standing issues with such payment guarantees – including a lack of uniform standards and difficulties in information sharing and …

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