Guangdong launches financing platform for SMEs
The new platform looks to address a major pain point that Chinese policymakers are eager to resolve – namely, a lack of financing for SMEs. Blockchain technology furnishes lenders with a reasonably complete profile of …
PBoC ups liquidity support in January
The RRR cut does not represent a significant increase in the scale or pace of policy easing, and we don’t expect it to arrest the slowdown in credit growth or do much to boost the economy. Rather, this move is a continuation of …
State Council releases implementation rules for Foreign Investment Law
Overall, we continue to see the swift rollout and implementation of the new FIL as positive for foreign companies operating in China …
Ping An Bank approved to establish wealth management subsidiary
Myriad financial institutions – both foreign and domestic – are looking to tap into the fast-growing wealth management market in China. It is no wonder, then, that Ping An is looking to …
PBoC issues notice to de-link loans from benchmark lending rate
This is the latest step in the PBoC’s policy to drag the interest-rate system into the 21st century, make it more responsive to market supply and demand, and push lending rates lower. Although the new LPR benchmark was …
National People’s Congress revises Securities Law
These long-awaited amendments to the Securities Law are aimed at making China’s stock markets more transparent and market-driven, to give more protection to investors, especially smaller players, and to …
PBoC issues implementation measures on financial consumer rights protection
As disposable income increases and the government encourages consumers to invest in financial products, regulators are working to improve consumer protection and confidence. The financial sector has …
MoF annual work meeting outlines priorities for 2020
The meeting gave a clear signal that tax and fee reductions are set to continue in 2020 – in line with broader economic policy goals to maintain pro-active fiscal policy to support the economy, while urging officials and departments to …
AIA to convert Shanghai branch to wholly owned subsidiary
In China, establishing a subsidiary – as opposed to a branch of a foreign company– enables a company’s China operations to function as an independent entity, broadening the scope of operations it may legally undertake, while allowing …
CBIRC codifies inspection rules
Until now, the CBIRC has been conducting on-site inspections without a guiding procedural framework. The new rules will …
Village banks set to increase local focus
The new requirements are meant to prevent village banks from expanding recklessly and increasing their activities in the interbank market to avoid fueling financial risk. They are also aimed at …
Former chairman of Hengfeng Bank given suspended death sentence for corruption
Hengfeng Bank, one of 12 national joint-stock commercial banks, has had a rough couple of years and is currently being restructured by the government. The bank’s troubles are not all due to …
CBIRC issues revised administration rules for foreign-funded banks
The latest revisions to the administrative rules are in line with government policy to open up the banking sector further to foreign participation, and address complaints about limits on foreign banks’ expansion. The changes also …
Regulators meet to discuss overhauling how bond defaults are handled
As the number of onshore bond defaults grows, regulators will need to bring greater efficiency and clarity to the debt restructuring process. The meeting represents the latest effort to …
Nomura securities joint venture begins operation
Nomura has said the Shanghai-based joint venture will operate brokerage, investment consulting, proprietary trading, and asset management businesses within the next four to five years, and intends to…
Another CBIRC regulator taken down over Baoshang Bank
Jia is the latest regulatory official from the Inner Mongolia CBIRC office to fall in the wake of the Baoshang Bank takeover. Investigations have uncovered widespread corruption surrounding the …
China’s digital currency continues to move forward
These are the latest comments by a PBoC official to try and squash speculation that DCEP will be similar to a crypto-currency like bitcoin. That may be a disappointment for crypto enthusiasts, but it is …
Amundi approved to launch wealth management joint venture
The joint venture aims to leverage Amundi’s extensive international investment management capabilities and the BoC’s branding and distribution channels to serve …
BlackRock, Temasek agree to wealth management JV with China Construction Bank
These are just the latest foreign companies to jump on the wealth management bandwagon in China. CCB is one of the big four state-owned banks, and, as we have highlighted in previous monitors, it has established …
CBIRC considers removing limit for banks to sell bonds to insurers
Lowering the criteria for banks to sell perpetual bonds to insurance companies should provide a bigger market for the debt as the government encourages banks to …