Banks gear up for GBA Wealth Management Connect
Banks with a significant presence in the GBA are eager to be early movers as the region’s financial integration gains steam…
Top credit ratings agency flagged again by regulators
As Beijing continues its campaign to derisk the financial sector and default rates rise, ratings agencies have been the subject of much tighter regulatory scrutiny…
PBoC calls on banks to increase lending to small companies
China’s recovery from the COVID-19 pandemic and the economy’s ability to continue to grow steadily depend in large part on the health and prosperity of MSMEs, which the government says provide most of the country’s jobs…
State Council, Party issue guidelines to stop illegal activities in the securities market, tighten supervision of overseas-listed companies
The section on overseas listings is brief by comparison, although the Opinions are quite clear in their desire to tighten oversight of companies raising money and listing abroad, and to ensure they comply with several pieces of legislation enacted over the past six years…
AIA agrees to buy stake in China Post Life
For overseas insurers, leveraging existing distribution networks is key to prospering in the China market…
Tencent mulls purchase of controlling stake in Sino-Japanese insurance joint venture
Pressure on AMCs to dispose of their non-core businesses has grown as the CBIRC has become increasingly worried about the risks the “big four” have accumulated through their expansion into unwieldy financial conglomerates…
CBIRC issues interim measures for recovery and resolution plans for financial institutions
China’s financial authorities are working hard to upgrade the country’s regulatory framework for financial institutions and to comply with international standards and regulations…
State Council says monetary policy tools will be introduced to help cut carbon emissions
Reducing carbon emissions has become a political task and finance will play a key role in achieving Xi’s goals…
CBIRC issues rules to improve the quality of directors and supervisors at banks and insurance companies
The state takeover and restructuring of Anbang Insurance Group Co. Ltd. in 2018 and Baoshang Bank Co. Ltd. in 2019 exposed serious shortcomings in corporate governance at China’s financial institutions that had the potential to destabilize the domestic financial system. Although regulators have known for years that weak corporate governance has been a major contributor to the string of scandals and fraud committed by both publicly listed, state-owned and private companies and financial institutions, these two high-profile rescues were a watershed moment…
CBIRC, PBoC roll out tougher rules for cash WMPs
These new regulations are part of a deluge of notices from regulators over the past couple of months as they rush to finalize detailed rules that will govern the new regulatory framework for the asset management industry that’s set to go into effect in January 2022. The authorities don’t want to get rid of cash WMPS…
CBIRC issues new rules for wealth management product sales
These rules are the most recent piece of a sweeping regulatory effort to overhaul the WMP industry that kicked off in 2017. After years of drafting and deliberation, the deadline for implementation – January 1, 2022 – is fast approaching…
CBIRC issues draft rules governing conduct of major shareholders of banks and insurers
Improving corporate governance has been high on the CBIRC’s priority list over the past couple of years in the wake of scandals that have undermined investor confidence and, in some cases, threatened the stability of the financial system. It is also part of the government’s broader strategy to de-risk the Chinese financial system and reduce the need for state bailouts…
NPC Standing Committee passes Hainan Free Trade Port Law
Encouragingly, policymakers have stated that they are prepared to tolerate the heightened level of risk inherent in greater financial opening and policy relaxation…
Shenzhen releases 14th Five-Year Plan and long-term goals through 2035
As with the bevy of other plans related to the development of the GBA, Shenzhen’s 14th FYP and 2035 objectives are long on aspiration and short on concrete implementation details…
Citic and Everbright apply for financial holding company licenses
Regulators have long been concerned about companies overextending themselves in the financial sector, with a string of high-profile scandals serving as cautionary tales about debt-fueled expansion and insufficient oversight…
Guo Shuqing highlights dangers of loose monetary policies, pledges continued derisking
Guo’s speech reflects continued concern among Chinese policymakers about the impact of the excess global liquidity created over the past couple of years…
Yi Gang warns of structural headwinds for Chinese economy
However, we think his claim that the deflationary pressure created by an ageing society will be offset by price increases resulting from China’s decarbonization drive is overly optimistic…
Yi Huiman defends CSRC’s regulation of STAR Market, calls for international regulatory cooperation
The CSRC has come in for a lot of criticism domestically over the new registration-based IPO system, which had been touted as a significant step forward in a much-needed overhaul of domestic stock markets…
Pan Gongsheng outlines forex priorities at Lujiazui Forum
It’s rare to get any surprises from speeches regulators give to forums like this, but it’s still worth paying attention to what they say as well as what they don’t say…
BlackRock awarded license to start operating mutual fund business
It’s been a busy few months for BlackRock, as the world’s largest mutual fund manager has expanded its footprint in the Chinese market both through tie-ups with other financial institutions and independently. Marketing and distribution could present a headache for BlackRock’s mutual fund business, although it’s doubtless done its research over the potential pitfalls…