17 Apr 2020

PBoC releases 2020 work plan

The PBoC work plan for the formulation and revision of regulations reflects several of the central bank’s key policy priorities, including systemic de-risking, tightening regulation of…


17 Apr 2020

PBoC Governor Yi Gang says COVID-19 rebound better than expected, highlights fintech’s contribution

China’s financial regulators have been pushing inclusive finance for several years to try and overcome bottlenecks and obstacles that exclude low-income individuals, the rural population, and small companies from the…


17 Apr 2020

CSRC approves Credit Suisse to take control of its China securities JV

This approval is the latest manifestation of the government’s commitment to opening the country’s financial markets to foreign companies, as we have documented in previous monitors. Importantly, these moves, as well as…


17 Apr 2020

Bank of Gansu issues new domestic shares to stateowned shareholders

Although these lenders are each following a slightly different bailout path, the common thread running through them is that they are all being rescued by state entities with …


16 Apr 2020

Chinese banks start beta tests of CBDC payment system

Before CBDC can be rolled out to general public, the central bank is undertaking a process of rigorous beta-testing. It’s unclear how long the testing will last, but the news demonstrates …


15 Apr 2020

PBoC looks to modernize

China’s central bank is different from the central banks of other major economies, not least because it lacks independence and answers directly to the Party leadership. But as China’s economy and financial system have grown…


15 Apr 2020

CIPS partners with 35 financial institutions

The addition of new shareholders and the increase in capital suggests a renewed push may be underway for the internationalization of the RMB and its use in cross-border trade settlement. China needs to make sure …


14 Apr 2020

NIFA publishes important paper on blockchain development

As fintech comes to occupy a more prominent role in China’s financial ecosystem, regulators are keen to establish ground rules that will promote standardization and an orderly market. Regulators have recognized that …


14 Apr 2020

CBIRC relaxes requirements for foreign participation in trust industry

Regulators have cracked down significantly on trust companies as a part of their fight against shadow banking and off-balance sheet debt. Trust companies were often used by financial institutions as means to …


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 …


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