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
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PBoC and CBIRC issue notice on non-capital TLAC bond issuance for G-SIBS
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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…
PBoC cuts banks’ forex reserve requirement ratio
This is a pretty moderate opening salvo to slow the RMB’s decline. The PBoC will likely cut the reserve ratio further if it’s not happy with the results…
State Council unveils plan for national private pension program
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April foreign financial institution approvals and specific financial opening developments
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Guangdong-Macau cross-border data verification platform trial begins
As we have previously pointed out, interoperability issues – be they legal, economic, or technological – have been one of the primary barriers to the integration of the GBA. The launch of the Guangdong-Macau cross-border verification platform represents a step toward resolving financial system compatibility issues and may develop into an important piece of infrastructure supporting the region’s financial connectivity…
CBIRC issues measures to support micro and small enterprises
MSEs have disproportionately borne the brunt of COVID-19 and its associated lockdowns in China, and their recovery has been much slower than that of large companies. This worries policymakers as China’s micro, small, and medium-sized enterprises provide most of the country’s jobs…
CBIRC issues document on rural revitalization work
Rural revitalization is a key policy aimed at keeping the economy growing, supporting employment, addressing inequality, and unleashing what the Party sees as a vast untapped consumer market, namely the rural population. Finance plays a crucial role here both in providing a vast financially-starved part of the economy with access to credit and beefing up insurance to help cushion farmers and rural businesses in the event of disasters…
PBoC calls for more research to help policymaking on transition and green finance
While decarbonization isn’t top of the agenda for 2022 as Beijing prioritizes stability above all, it doesn’t mean that regulators are just sitting around twiddling their thumbs. The PBoC is ensuring that it is laying the groundwork to enable the investment necessary to help China achieve its climate goals…
CSRC calls for increased focus on long-term investing
Traditionally, banks have been the main source of funding for China’s economy, with capital markets playing little more than a supporting role. But that’s beginning to change…
NAFMII launches dispute mediation center in Beijing
Beijing is in the midst of overhauling China’s capital markets so that they better serve the real economy. These dispute resolution mechanisms are one key piece of the puzzle…