PBoC issues rules to improve settlement of defaulted bonds
China is working hard to encourage the development of the corporate bond market and the participation of international investors. But rules and regulations have not kept up with the opening of the market and the growing number of corporate bond defaults has…
CBIRC approves insurers to trade treasury bond futures, but only for hedging
China’s government bond market, although the world’s second largest, is still relatively immature and illiquid. As the state’s borrowing needs to grow, the market needs more participants to bring depth and liquidity, and investors need…
PBoC issues rules to clarify standardized bills market to help SME financing
Getting money into the hands of SMEs has been a longstanding problem for the Chinese authorities, and resolving it has taken on added urgency in the wake of the COVID-19 pandemic. The money markets are an important source of …
GBA to pilot Wealth Management Connect
This is the latest in a string of initiatives from the central government to promote the financial integration of Hong Kong and Macau with the mainland through the GBA. As one of the most affluent regions in China, it presents significant opportunities for …
CBIRC orders banks and insurers to conduct internal reviews to uncover misconduct
The CBIRC’s notice is yet another attempt by regulators to unearth misconduct as part of the government’s broader campaign to reduce risks in the financial system, one of the three critical battles identified by …
CSRC plans trial to issue securities licenses to commercial banks
This pilot marks a substantial change in regulatory track, as the law prohibits most domestic commercial banks from offering securities services on the mainland. At present, domestic banks are instead offering …
China releases new, shortened negative list for foreign investment
Shortening the negative list for foreign investment is in line with China’s longstanding policy goal of opening its economy and improving the business environment. But with foreign direct investment declining as a result of US-China tensions …
CSRC lowers barriers to entry for investment in securities firms
Chinese regulators face a dilemma. On the one hand, they want to help securities firms, especially smaller regional brokers, shore up their balance sheets, bring in more capital, and diversify ownership. On the other hand, they also want to prevent the kind of abuse that …
AIA approved to convert mainland branches into wholly owned subsidiary
The mainland market has become an increasingly important part of AIA’s business empire which spans some 18 markets in the Asia-Pacific region including Australia, South Korea, and Vietnam. In 2019, the value of new business in mainland China rose by …
FTSE Russell completes phase one of A-share inclusion
Rising international demand for exposure to Chinese A-shares has driven international index providers like FTSE Russell, MSCI Inc., and S&P Dow Jones Indices to increase their inclusion level in benchmark indices. The shift also serves to correct the …
CBIRC warns trust companies to curb financing products
Once notable for being a relatively free-wheeling area of the Chinese financial system, the trust industry has come under increasing scrutiny and authorities are now looking to more effectively supervise the sector. This regulatory tightening shows that financial de-risking remains financial policymakers’ overriding priority, even as they …
JPMorgan approved to operate first fully foreign owned futures business
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 it would …
MofCom lowers threshold for foreign strategic investment in A-Share companies
Chinese officials are in the process of revising many outdated regulations and laws to catch up with the rapid development of the economy and financial sector. Many of the old foreign investment rules are …
Regulator weighs options to rescue troubled Huaxia Life Insurance
Huaxia Life, which was founded in 2006, is a product of the expansion and lax oversight of China’s financial sector over the past decade. It was one of the fast-moving, innovative insurers that grew rapidly through …
Beijing publishes policies, guidebook to attract foreign asset managers
Regulators have undertaken a big drive to open capital markets to foreign investors and to encourage foreign financial institutions (FFIs) to set up shop in the country. As part of that strategy, officials have …
CBIRC to trial bulk disposal of personal non-performing loans
Personal loans now account for a significant share of bank lending, and delinquencies have undoubtedly risen in the face of the COVID-19 pandemic. This move will help ease pressure on …
New Beijing outbreak sends authorities scrambling
The recent outbreak in Beijing is an important reminder that the risk of a broader second-wave COVID-19 outbreak is very real. The good news is that …
CBIRC to nearly double spending on internal disciplinary investigations
The Party’s internal disciplinary organization identified the financial sector as a particular focus of its anti-corruption work in 2019. Since then, efforts to clean up the regulatory system have been …
American Express JV obtains bank card clearing services license
American Express’s new license is another indication of China’s continued drive to open its financial sector to foreign participation. Previously, China had resisted opening its payments market to foreign players, despite …
CBIRC cuts loan-loss provision requirements for small lenders
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