SAFE expands pilot program for high-tech MSMEs’ cross-border financing
The expansion of the pilot program is part of a broader drive by policymakers to support the growth of small, innovative companies, many of whom are …
Yu Fachang assumes Party committee membership at Everbright
While the exact scope of Yu’s portfolio remains unclear, there is speculation that he will play a role in overseeing …
China fintech “regulatory sandbox” participants announced
There are two major distinctions between China’s fintech sandbox and similar initiatives in other countries. First, the PBoC will …
CSRC confirms scrapping of foreign ownership limits on securities companies
Although hailed by the Trump administration as an important concession on the part of Chinese negotiators, the opening of China’s capital markets to foreign participation has been well underway for some time as the …
March wrap-up: High-level policy developments
Consumption is now a major driver of China’s economy and if GDP growth is to fully recover, getting consumption – both government and household spending – back to pre-COVID-19 levels will be crucial. The measures taken so far…
Financial support for the economy
The PBoC is treading a fine line between adding enough liquidity into the financial system to ensure demand is met and money-market interest rates do not spike, and preventing another …
SAFE adjusts macroprudential assessment parameter to allow more offshore borrowing
Since the World Health Organization officially labelled the COVID-19 outbreak a global pandemic on March 12, emerging market currencies have fallen sharply, including …
FSDC sets up local financial coordination mechanism
One of the top priorities of President Xi Jinping since 2017 has been to rein in financial risks across the economy and the FSDC was set up with the specific responsibility for …
Provincial measures: Hubei gradually lifts restrictions
Efforts by officials to restart the economy in Hubei province, and Wuhan in particular, suggest authorities are confident that they have succeeded in controlling the outbreak. However, we expect …
State-owned entities to inject RMB 12.1 billion into Bank of Jinzhou
As we’ve noted previously, there are likely to be more bank failures and rescues in 2020 as regulators try to shore up smaller troubled lenders with weak balance sheets. After the state-led takeover of Baoshang Bank in May 2019 caused …
MoF clarifies its role in the provision of capital to state-owned financial institutions
Chinese leaders are eager to consolidate the power to invest in FIs and exercise shareholder rights on behalf of the state. The rationale behind the move is …
ICBC appoints central bank official as new vice president
The promotion of Wang is the latest change in the leadership team at ICBC. Since 2018, five of the bank’s vice presidents have either resigned or been promoted to other jobs. Of these, two were appointed vice governors of …
China Insurance Protection Fund carries out investment management assessment
With the CBIRC’s recent move to allow insurers greater freedom to invest in derivatives, ensuring strong investment and risk management capabilities will be of paramount importance. This survey is ..
PBoC tightens supervision of structured deposits
The PBoC is concerned that the minimum guaranteed interest rates on structured deposits are too high and that they will ultimately drive up borrowing costs for banks, hurt their margins, and …
Personnel reshuffle at HKMAO
Xia’s appointment is further proof that Beijing is dissatisfied with “Hong Kong specialists,” such as Zhang Xiaoming, who have worked on Hong Kong affairs for most of their careers. For obvious reasons, the top leadership is not …
PSBC approved to issue RMB 80 billion in perpetual bonds
Banks across China continue to be capital constrained. Following the central bank’s focus on promoting the …
Financial regulators issue plan to strengthen supervision of financial infrastructure
The key objectives of the work plan are unification and standardization of regulations. Policymakers are looking to …
PBoC conducts assessment of financial crisis contagion
Financial de-risking has been a major policy objective of China’s financial regulators over the past several years, and the potential for financial contagion between institutions is of particular concern. The recent emergence of distress among …
CBIRC drafts rules for insurers to invest in derivatives
From the CBIRC’s perspective, the cautious opening of China’s CGB futures market must be tempered by a relatively high regulatory bar for participation. The draft rules governing …
ICBC, CMB, and Ping An Bank join mutual fund advisory business pilot program
The pilot program serves to shift the sales model for fund advisory services in China toward a fee-based system that places greater emphasis on the client’s best interests. This will bring China more into line with …