PBoC and SAFE launch trial anti-money laundering guidelines for cross-border services
Efforts to upgrade and improve anti-money laundering regulations are a key component of financial regulators’ broader goals of financial derisking and fighting crime. It is also a key requirement of …
CBIRC investigates use of funds by insurance companies
Insurance companies are becoming increasingly important players in the financial sector as the authorities have gradually allowed them to diversify away from low-risk, low-return government bonds into higher-yielding assets such as equity investments and infrastructure. But …
CBIRC finalizes new rules on management of insurers’ solvency
These revised regulations better reflect the C-ROSS regulatory framework and provide a more comprehensive approach to assessing insurers’ solvency. They not only impose tougher solvency requirements but also hit top management where it hurts …
PBoC starts environmental information disclosure pilot in GBA
Climate change and the environment have been moving up the political and economic agenda for several years and are now a top priority after President Xi Jinping pledged in September 2020 that China would aim to hit peak emissions before 2030 and achieve carbon neutrality before 2060. These issues are likely to …
Mainland, Hong Kong and Macau regulators sign MoU for wealth management connect pilot
Connect programs have become the go-to choice for China’s regulators to link up with markets outside the mainland as they allow the authorities to keep control over capital flows and investments. After the success of the stock connects and the northbound bond connect, it’s no surprise that …
PBoC, SWIFT set up JV with potential for cross-border transfers using digital RMB
There is no clear indication of what the JV’s plans and focus are but, given its shareholder structure, it seems to center around the payment clearing system and cross-border transfers. Given the involvement of …
CBIRC discloses results of probe into the investment activities of staff and close relatives
This is the first time that the CBIRC has required its staff to report their investment and financing activities. The exercise is just one small part of …
PBoC official calls for greater financialization of carbon emissions trading market
China is the world’ largest emitter of greenhouse gases, and curbing emissions and pursuing low-carbon, green development have become important planks of government policy. The financial sector is being called on to …
PBoC research paper calls on fintech platforms to protect personal information
On February 5, the People’s Bank of China (PBoC) published a research paper titled…
CSRC officially approves establishment of Guangzhou Futures Exchange
This is the first futures exchange to get the go-ahead in 14 years, which illustrates…
PBoC issues measures to regulate customer reserve funds held by third-party payment companies
These measures are part of the broader effort to limit risks in the financial system and step up regulation of third-party payment companies, who…
Allianz granted approval for first wholly foreign-owned insurance asset management firm
Allianz is the first foreign company to receive these milestone approvals, and first-mover advantage should count for something, but there are plenty of big international rivals hot on its heels…
CBIRC issues draft code to improve corporate governance at financial institutions
Failure of corporate governance has been identified as one of the root causes of the financial scandals that have hit state-owned and private companies, and as a key risk to the financial system. This may well have been driven partly by…
CBIRC lays out its priorities for 2021
The goals outlined at the CBIRC’s 2021 work conference come as no surprise – most are long-standing targets and problems. However…
PBoC tightens oversight of data collection by credit reporting companies
The draft measures are part of a broader effort by the government to improve data privacy and protection. Since Beijing …
Banks banned from offering online savings products on third-party internet platforms
Regulators are working overtime pumping out rules to contain what they see as growing risks in various parts of the financial system. This is partly a function of the ongoing financial derisking campaign that …
CBIRC allows non-bank financial institutions to initiate creditors’ committees
In the wake of the recent wave of domestic bond defaults and with the expectation that the number of bond and loan defaults is going to increase, financial regulators have pushed for new rules to …
Yi Gang commits to staying the course
None of this is new – it’s the same note Yi has been hit for weeks. However, it underscores …
PBoC draft rules on third-party payment providers threaten to break up dominant players
Beijing has become increasingly concerned about the growing market power of fintech companies, notably the third-party payment platforms Alipay, owned by Ant Group Co. Ltd., and WeChat Pay, owned by Tencent Holdings Ltd. The concern stems from …
CBIRC proposes regulations to improve management of banks’ liabilities
The proposed regulations are consistent with other recent regulatory efforts to improve oversight of bank funding as part of a broader campaign to derisk the financial system. While most analysts pay close attention to the asset side of banks’ balance sheets, it is instability in bank liabilities that are more likely to …