04 Aug 2020

PBoC official sheds light on how and why Baoshang Bank ended up in state hands

Financial regulators are getting serious about improving corporate governance in the financial sector after a string of scandals and bailouts over the past three years. This is the third high-profile commentary about…


04 Aug 2020

Shenzhen releases details of regulatory sandbox program

Nine major cities in China have now been approved for the regulatory sandbox program. We expect to see…


04 Aug 2020

NDRC specifies application procedures and selection criteria for publicly traded REIT pilot projects

The introduction of publicly traded REITs has been under discussion for more than a year, but its launch has been delayed by regulatory and tax complications. Since April, the rollout of publicly traded REITs has gained added urgency because …


04 Aug 2020

CFETS lowers FX trading fees

The exemption of transaction fees is consistent with China’s efforts to promote the internationalization of the RMB. While it would be easy to assume that this is tied to recent geopolitical developments, our read is that this more of a…


04 Aug 2020

Bank of China chief economist urges country to prepare for financial war

A financial war between the US and China looks almost inevitable given the mood in Washington right now – the only question is how intense it will be. At a minimum, the bar will be raised on…


04 Aug 2020

PBoC holds mid-year meeting, outlines priorities for H2

The PBoC’s mid-year report was mainly a restatement of long-standing priorities, alongside those that have emerged as a result of the COVID-19 pandemic. However, the report contained one phrase that is worth highlighting…


03 Aug 2020

Guangdong sets out detailed plans to implement blueprint for financial integration of the GBA

Authorities have moved quickly to put the GBA masterplan into action since the high-level guidance was published. We will continue to see more…


03 Aug 2020

PBoC extends transition period for compliance with new asset management rules a second time

Since the beginning of 2020, banks have been taking a wait-and-see approach toward compliance with the new regulations in the expectation that the deadline for compliance would be extended. As a result, many have made little progress on…


03 Aug 2020

CSRC outlines policy objectives for the second half of 2020

There was little new in the readout of the CSRC’s meeting – these policy initiatives have been mentioned frequently in the past few months. But the regulator is sending a signal that the authorities are determined to…


03 Aug 2020

SAFE pledges cross-border investment management reform

SAFE’s statement offered little in the way of concrete detail, but it does suggest that additional cross-border investment opening is in the offing. The cautious relaxation of cross-border capital flows has been under way for some time, but has been given…


03 Aug 2020

Supreme People’s Court allows class-action lawsuits for securities disputes

Historically, the government has refused to allow any kind of class-action lawsuit out of concern that such a mechanism could be used to challenge the authorities. This means that if an individual wants to sue a company or local government for wrongdoing and compensation, they must…


31 Jul 2020

CBIRC releases revised rules on insurers’ solvency management for public comment

China’s regulators let the insurance sector off the leash in the early 2000s, triggering explosive growth as new upstarts challenged a dull and boring domestic industry and launched innovative but risky products that put their balance sheets at risk. The authorities have been working to…


30 Jul 2020

New A-share hedging products launched on HKEx

We expect to see more moves both to boost Chinese capital market access for foreigners in the coming months and to address the concerns of overseas investors on issues such as the lack of hedging tools. We also expect Chinese authorities to…


27 Jul 2020

China has for decades tolerated private loans and privately negotiated interest rates to help companies that can’t access the formal banking system obtain financing. But the slump in economic growth and the increasing difficulties many companies are facing in repaying their loans has made …


27 Jul 2020

Details emerge of GBA insurance connect program

The news that the GBA insurance connect is progressing follows June’s announcement that a GBA wealth management connect is under development by Hong Kong and mainland authorities, and the publication of a set of opinions by Chinese regulators in May on the financial integration of the GBA. This suggests that …


27 Jul 2020

JPMorgan Futures becomes first fully foreign-owned futures company

JPMorgan is one of dozens of foreign financial institutions seeking to take control of their joint ventures in China after the government announced in November 2017 that it would scrap restrictions on ownership in sectors including securities, futures, and mutual funds. We expect …


27 Jul 2020

CSRC revises measures on information disclosure requirements for public companies

Financial regulators are working to move China’s capital markets toward a more transparent, rules-based system which means we are increasingly seeing regulations to enforce transparency and a greater focus on protecting individual investors. Information disclosure is a key part of this transformation and given that it is currently…


27 Jul 2020

CPPCC holds conference to promote the development of the GBA

The GBA is one of Xi Jinping’s signature projects. Consequently, it is a political imperative for the initiative to…


23 Jul 2020

PBoC issues rules to standardize financial institutions’ blockchain-based applications

What has caught the media’s attention is that the PBoC didn’t mention the word “decentralized” when giving its first formal definition of blockchain technology in the policy document. That further confirms the consensus view that …


23 Jul 2020

CBIRC outlines de-risking priorities for H2 2020

None of the measures outlined above are new. Rather, they represent a continuation of existing efforts and policy directions that the CBIRC…


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