Bad debts rise in Q1 – but only a little
Although the NPL ratio is the headline-grabbing number, the NPL disposal data is a far more reliable metric to judge the state of the sector. Given that disposals increased by more than 20% year on year in Q1 – having already ramped up aggressively in recent years – banks are clearly…
Finance veteran appointed vice governor of Jiangsu province
As China’s economy undergoes a structural slowdown, and debt risks increase after years of strong credit expansion, the Party has become increasingly concerned about…
Anbang sells off remaining Chengdu Rural Commercial Bank shares
The stake in Chengdu Rural Commercial Bank was one of the most difficult parts of the Anbang empire to get rid of, given the complex web of companies that…
Bank of China oil-linked investment product blows up after crude futures collapse
One key factor that led to the huge losses for BoC investors was that the rollover date for contracts in Yuan You Bao was so close to the expiration of the underlying contract. Other banks who offered similar products…
CBIRC starts new round of self-inspections for insurance funds
The CBIRC continues to be concerned with building compliance in the industry and ensuring that funds are properly and sensibly allocated. This newest round of…
PBoC releases 2020 work plan
The PBoC work plan for the formulation and revision of regulations reflects several of the central bank’s key policy priorities, including systemic de-risking, tightening regulation of…
PBoC Governor Yi Gang says COVID-19 rebound better than expected, highlights fintech’s contribution
China’s financial regulators have been pushing inclusive finance for several years to try and overcome bottlenecks and obstacles that exclude low-income individuals, the rural population, and small companies from the…
CSRC approves Credit Suisse to take control of its China securities JV
This approval is the latest manifestation of the government’s commitment to opening the country’s financial markets to foreign companies, as we have documented in previous monitors. Importantly, these moves, as well as…
Bank of Gansu issues new domestic shares to stateowned shareholders
Although these lenders are each following a slightly different bailout path, the common thread running through them is that they are all being rescued by state entities with …
Chinese banks start beta tests of CBDC payment system
Before CBDC can be rolled out to general public, the central bank is undertaking a process of rigorous beta-testing. It’s unclear how long the testing will last, but the news demonstrates …
PBoC looks to modernize
China’s central bank is different from the central banks of other major economies, not least because it lacks independence and answers directly to the Party leadership. But as China’s economy and financial system have grown…
CIPS partners with 35 financial institutions
The addition of new shareholders and the increase in capital suggests a renewed push may be underway for the internationalization of the RMB and its use in cross-border trade settlement. China needs to make sure …
NIFA publishes important paper on blockchain development
As fintech comes to occupy a more prominent role in China’s financial ecosystem, regulators are keen to establish ground rules that will promote standardization and an orderly market. Regulators have recognized that …
CBIRC relaxes requirements for foreign participation in trust industry
Regulators have cracked down significantly on trust companies as a part of their fight against shadow banking and off-balance sheet debt. Trust companies were often used by financial institutions as means to …
“New” Baoshang Bank officially established
The official establishment of Mengshang Bank means that the state bailout of Baoshang Bank is coming to an end. As we’ve noted previously, this process of setting up a new entity to take over …
Bank of Gansu next in line for state bailout
Bank of Gansu is the latest regional lender to get a state-backed bailout as part of the Party’s campaign to contain financial risks and maintain stability in the financial system. Since May 2019, three other distressed regional lenders have …
CBIRC issues draft measures to evaluate commercial banks’ financial services to SMEs
Regulators have long tried to increase lending to the poorly served segment of micro and small companies, but it’s been a long, hard slog, as banks are reluctant to …
Ping An consumer finance arm granted approval to begin operations
China has been actively encouraging the consumer finance market since 2009 when it started consumer finance pilot projects in four cities, as part of efforts to …
Top leadership issues guideline on improving market-based allocation of resources
Chinese officials have long realized the importance of pricing signals in the allocation of resources and factors of production, and they understand that the weak role of pricing mechanisms is a key barrier to…
CBIRC vice chairman calls for strengthening corporate governance of small and medium-sized lenders
Slowing economic growth has exposed the deepening stress in China’s banking system, especially among small regional lenders, resulting from mismanagement and corruption. But bailouts alone won’t …