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…


22 Jul 2020

China to grant custody and payments license to BNP Paribas, lift JV restrictions on Axa

China has opened up its financial sector significantly over the past two years, partly in response to pressure from the US. Beijing may be trying to show European governments that …


22 Jul 2020

CBIRC devolves supervision of property and casualty insurers and reinsurance companies

As China’s regulatory landscape matures, regulators are looking for ways to streamline operations, cut costs, and encourage innovation. By devolving responsibility to local branches, the CBIRC is looking to share …


22 Jul 2020

PBoC releases details of regulatory sandbox pilot program in Shanghai

Chinese regulators recognize the efficiency that fintech can bring to the financial system, but they continue to err on the side of caution when it comes to implementing nascent technologies. Authorities will closely monitor these projects to satisfy …


21 Jul 2020

PBoC inks agreements with Didi Chuxing and Meituan-Dianping to test its digital currency

With millions of daily users, Didi Chuxing and Meituan-Dianping occupy central roles in China’s digital lifestyle ecosystem. Successful collaboration with these two consumer services behemoths would vastly …


21 Jul 2020

Regulators take over nine financial institutions linked to missing tycoon Xiao Jianhua

Financial regulators are currently feeling their oats. The CBIRC and the CSRC have become increasingly assertive, empowered, and willing to take relatively draconian measures to fulfill their …


20 Jul 2020

CBIRC vice chairman talks corporate governance for financial institutions

China Inc. has been badly bruised by a series of corporate scandals over the past few months, including accounting fraud at Luckin Coffee Inc. and gold fraud at Nasdaq-listed Wuhan Kingold Jewelry Inc., so it’s hardly surprising that …


20 Jul 2020

CSRC encourages mergers of brokerages and mutual fund houses

This move is financial Supply-Side Structural Reform (SSSR) in action. In 2016, the original SSSR program was used to great effect to consolidate various upstream industries. Policymakers have been discussing financial SSSR for a couple of years now, but with little indication as to how it would work …


20 Jul 2020

PBoC and CSRC announce plans to connect China’s bond markets

Following the rapid expansion of China’s bond markets over the past decade, this development is long overdue. Allowing all investors to trade all types of bonds will help improve …


20 Jul 2020

CBIRC finalizes measures to regulate internet lending

The measures mark another effort by financial regulators to manage risks in the fast growing fintech sector in China. However, formulating rules and regulations is a challenging task as …


17 Jul 2020

CSRC pledges crackdown on securities fraud

The CSRC’s statement is yet another signal from financial regulators that they are determined to tackle financial fraud and that this will be a key theme in the capital markets for …


17 Jul 2020

Supreme People’s Court issues guidelines for dealing with bond disputes

The SPC’s guidelines are a direct response to the rise in bond defaults and disputes in recent years and the lack of clear guidelines, responsibilities, and accountability for issuers, investors, and the courts. These shortcomings are throwing up significant obstacles to the resolution of disputes, often delaying agreements for …


16 Jul 2020

State Council to scrap restrictions on insurers’ equity investments, CBIRC eases investment cap

As of the end of May, China’s insurers collectively held nearly RMB 22 trillion in assets. As such, lifting of restrictions on equity investment for insurers is likely to …


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