11 Apr 2020

“New” Baoshang Bank officially established

The official establishment of Mengshang Bank means that the state bailout of Baoshang Bank is coming to an end. As we’ve noted previously, this process of setting up a new entity to take over …


10 Apr 2020

Bank of Gansu next in line for state bailout

Bank of Gansu is the latest regional lender to get a state-backed bailout as part of the Party’s campaign to contain financial risks and maintain stability in the financial system. Since May 2019, three other distressed regional lenders have …


09 Apr 2020

CBIRC issues draft measures to evaluate commercial banks’ financial services to SMEs

Regulators have long tried to increase lending to the poorly served segment of micro and small companies, but it’s been a long, hard slog, as banks are reluctant to …


09 Apr 2020

Ping An consumer finance arm granted approval to begin operations

China has been actively encouraging the consumer finance market since 2009 when it started consumer finance pilot projects in four cities, as part of efforts to …


09 Apr 2020

Top leadership issues guideline on improving market-based allocation of resources

Chinese officials have long realized the importance of pricing signals in the allocation of resources and factors of production, and they understand that the weak role of pricing mechanisms is a key barrier to…


03 Apr 2020

CBIRC vice chairman calls for strengthening corporate governance of small and medium-sized lenders

Slowing economic growth has exposed the deepening stress in China’s banking system, especially among small regional lenders, resulting from mismanagement and corruption. But bailouts alone won’t …


03 Apr 2020

PBoC steps up liquidity support in April

As we wrote in last month’s monitor, cutting the RRR shows the PBoC’s intention to make a permanent liquidity injection, indicating the central bank sees more than …


03 Apr 2020

JPMorgan to take full control of China mutual fund JV; BlackRock, Neuberger Berman to set up mutual funds

Foreign financial institutions have been making preparations to gain control of their joint ventures and set up wholly owned companies in China since the government pledged in November 2017 to …


03 Apr 2020

PBoC releases draft measures on customer reserve funds of third-party payment providers

The central clearing house has been in place for a while. These draft measures aim to clarify…


02 Apr 2020

CSRC official proposes new model for CBDC

As it prepares to compete on the digital currency front, especially against private sector players like Facebook’s Libra, China is looking to pioneer a …


31 Mar 2020

Prudential, CITIC set up asset management JV in Beijing

Earlier this year, the China Banking and Insurance Regulatory Commission (CBIRC) granted a business license to the joint venture, which has …


31 Mar 2020

Ant Financial and ICBC enter QR code compatibility arrangement

ICBC and the other big banks have been left in the dust by the payment systems of Alipay and rival Tencent Holdings Ltd.’s WeChat Pay, which together account for …


31 Mar 2020

Bank of Jinzhou improves performance, but bad debts go up

Bank of Jinzhou, like many other regional lenders, is paying the price of years of overly rapid expansion, poor lending decisions, and weak oversight. The slowing economy has exposed these …


31 Mar 2020

Oaktree awarded outbound investment quota by Beijing financial regulators

China’s policies to open its financial markets and give foreign institutions more access are mostly aimed at encouraging capital inflows. However, a few channels are…


31 Mar 2020

Fresh personnel reshuffle at CBIRC

Personnel reshuffles of this type allow officials who have been in a given position or department for an extended period of time to gain a broader understanding of …


27 Mar 2020

PBoC and CBIRC release draft of measures to assess rural financing

Xi Jinping’s rural revitalization strategy plays a key role in the Party’s development goals that include modernizing the economy, narrowing urban-rural inequality, raising living standards, and …


27 Mar 2020

CBIRC tightens licensing oversight of non-bank financial institutions

NBFIs play a key role in providing financing for sectors that are often underserved by traditional banks or are restricted from taking out bank loans, such as real estate. However, lax regulation has led …


27 Mar 2020

Two US banks to take control of their securities JVs

The approvals mark the latest in a string of financial opening measures, which we have documented in past monitors. Importantly, these moves, as well as the…


25 Mar 2020

CBIRC issues new rules for insurers’ asset management products

China’s central bank and other financial regulators published the long-awaited final draft of a new regulatory framework for the asset management industry in April 2018. The aim was to …


24 Mar 2020

ZhongAn narrowed losses in 2019

ZhongAn has benefited from first-mover advantage as China’s first online-only insurer and from its links with two successful internet financial services groups. But with the opening of China’s …


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