NFRA launches action plan to develop Shanghai into an international financial center
China’s authorities have been striving to develop Shanghai into a bona fide international financial center for almost 20 years, but progress has been slow. However, the urgency of those efforts …
Econ policy advisor previews the 15th FYP
Dong has identified the most pressing issue facing China’s industrial economy. Weak household demand …
Beijing creates pathway for some Hong Kong-listed companies to dual list in Shenzhen
This latest reform marks a further step toward integrating Hong Kong’s financial system with that of mainland China. According to Caixin, there are currently 197 Hong Kong registered companies …
New Fujian pilot lets Taiwanese expats use offshore RMB for housing purchases
In recent years, authorities have taken steady steps to promote RMB internationalization, including by increasing the use of RMB in global trade and expanding the scope of offshore RMB financial products. Fujian’s latest pilot effectively creates …
Finance ministry grants accounting reprieve to struggling insurers, offers simplified rules for smaller firms
The finance ministry is taking a pragmatic approach to accounting reform by acknowledging that a one-size-fits-all timeline risks destabilizing financially weak insurers. These reprieves offer smaller players …
Citigroup and Hang Seng cut staff in China
In recent years, many global banks have undertaken broad restructuring and cost-cutting measures in response to a more challenging global economic environment – weak post-pandemic growth, rising geopolitical tensions, and weak deal activity have put pressure on revenues. Technology adoption …
Policy banks reportedly poised to deploy RMB 500 billion to capitalize infrastructure projects
Despite the Politburo’s pledgeto accelerate fiscal support for the economy in April, no new support has materialized. This program could give credit demand a much-needed boost…
Foreign financial institution approvals and specific opening developments (May 2025)
AIA; Generali; Fosun
LPR rates decline by 10 bps, major banks cut deposit rates
The LPR cut is too modest to meaningfully stimulate credit demand among businesses or households. However, it will provide some relief for industrial firms struggling with persistent producer price…
PBoC cuts interest rates, RRRs
In March, the State Council signaled lower HPF rates were coming as part of a plan to boost consumption. Then, in late April, the Politburo also said it would accelerate…
Beijing launches coordinated push to finance tech self-sufficiency
The creation of a centralized coordination mechanism marks a meaningful shift toward stronger policy coherence. Improved oversight and alignment across ministries…
PBoC warns monetary loosening will exacerbate deflationary pressures
While monetary tools remain in play, they are increasingly positioned as enablers of fiscal expansion, rather than as primary levers of macroeconomic adjustment. The RRR cut, for example…
PBoC aligns financial sector with national data security framework
Previously, the financial industry operated under a separate five-tier data sensitivity system, which created challenges for regulatory coherence and cross-sectoral data integration. The adoption of the national three-tier framework resolves this inconsistency and positions…
Industrial Bank becomes first joint-stock bank to set up an asset investment company (AIC)
China’s central authorities have increasingly highlighted the need to provide more support for innovative firms as a priority. However, private sector venture capital…
PBoC expands stock swap and relending program to support A-shares
Beijing hopes these measures will limit the impact of the trade war on the stock market. The goal of the programs…
China launches “Sci-tech Bond Board” to boost tech sector financing
The Sci-Tech Bond Board represents another incremental step in China’s evolving strategy to support tech companies through capital markets. By creating a dedicated…
NFRA to cut insurers’ risk-weighted capital requirements to boost stock market investment
This move supports Beijing’s oft-stated goal of increasing the role of long-term investors in the stock markets, but the timing is aimed at supporting stock prices in the short term, as tariffs start to bite. That said, cutting capital requirements…
PBoC ramps up relending facilities
Banks have proven reluctant to use the PBoC’s relending facilities over the past year. Borrowing under the innovation facility peaked at almost RMB 350 billion in Q3 2023, but was down to only RMB 68.5 billion…
PBoC, NFRA update regulations overseeing bank card clearing companies
These updates did little to address key obstacles facing potential foreign entrants. For example, national security review requirements for foreign investors remain…
Foreign financial institution approvals and specific opening developments (April 2025)
Generali; Prologis; VanEck; UBS; Morgan Stanley; Payoneer