Record number of brickand-mortar bank outlets closed in 2020
The closure of brick-and-mortar bank outlets is inevitable in a country where mobile and online banking and e-commerce are now ubiquitous, and the sector…
More small and medium-sized banks allowed to issue perpetual bonds
Smaller banks — and particularly those that aren’t listed — have fewer channels available for raising capital than their larger counterparts. They aren’t generating enough profit to add to their…
China abolishes QFII and RQFII quotas
The scrapping of QFII and RQFII quotas represents a very modest concession to financial opening given that existing quotas were not…
PBoC makes two key personnel appointments
In early May, local financial media reported that Sun Tianqi had been appointed as the head of the financial stability bureau of the People’s Bank of China (PBoC) and Zhou Chengjun was promoted from…
CBIRC approves financial investment companies to manage debt-to-equity swaps
This is yet another attempt by regulators to push forward the debt-to-equity swap program, which has made disappointing progress since it was unveiled in 2016. The program is part of the broader agenda to…
FSDC looks to fight fraud amid stimulus
The FSDC’s concern over capital market fraud and risks in international commodity markets stem from two recent high-profile scandals – the loss of an estimated RMB 9 billion by investors in a speculative financial product sold by Bank of China Ltd. linked to…
ZhongAn subsidiary receives Hong Kong digital license
ZhongAn’s expansion into Hong Kong bears watching closely. Insurtech is a nascent business in China, but increasing demand for…
HSBC Life China to gain full control of China JV
The financial details of the deal have not been disclosed, and the acquisition is subject to regulatory approval from…
CBIRC issues 2020 legislative plan
We encourage foreign financial institutions to thoroughly review the list and determine which regulations – and which proposed changes – may have an impact on their business.
Central Huijin sells stake in Everbright Bank to Everbright Group
Central Huijin’s sale paves the way for Everbright Group to list on the Hong Kong Stock Exchange (HKSE). In October, financial media reported that…
JPMorgan applies to take full ownership of China futures JV
Currently, JPMorgan holds a 49% stake in the JV with Shenzhen Wallace Rand Equity Investment Fund Management Co. Ltd. which holds …
ABC approved to issue RMB 120 billion in perpetual bonds
China’s big four state-owned commercial banks – ABC, Industrial and Commercial Bank of China Ltd., Bank of China Ltd., and China Construction Bank Corp. – are on the list of 30 global systemically important banks compiled by …
ChiNext to debut registration-based IPO system
The transition to a registration-based IPO system will bring the ChiNext board into alignment with the Shanghai Stock Exchange’s STAR Market board, which was the first to test the new system, and will allow…
PBoC announces expansion of fintech “regulatory sandbox” pilot
The sandbox model is typical of China’s experimental style of policymaking. While fintech has been widely acknowledged by policymakers as potentially very valuable to China’s overall financial development …
Two city commercial banks move ahead with plans for wealth management subsidiaries
These are just the latest domestic banks to move forward with their wealth management subsidiaries. This push is likely to accelerate further…
PBoC Governor Yi Gang warns of dangers of excessive stimulu
COVID-19 has dealt an added blow to China’s economy, significantly exacerbating the slowdown in economic growth that was already apparent throughout 2019. As such, policymakers have been debating the…
CBIRC pushes for real-name registration of individual insurance policies
Real-name registration is another way for the CBIRC to crack down on malfeasance and fraud by ensuring that…
CBIRC issues rules to regulate use of insurance policies as loan collateral
Although policy loans are common in developed economies, they are a relatively new phenomenon in China. The market has grown rapidly and…
Xiong’an New Area announces digital currency pilot
If implemented successfully, the PBoC’s digital currency project could be a significant aid in eradicating financial malfeasance by enhancing…
CBIRC to continue crackdown on malfeasance by bank shareholders
The COVID-19 pandemic will bring new cases of malfeasance to light as banks come under growing pressure from bad loans and are forced to reckon with…