CBIRC vice chairman Wang Zhaoxing steps down
After the merger of the CBRC and CIRC in 2018, vice chairmen from both organizations were brought aboard the newly formed CBIRC from their previous posts. Given the surplus of …
Financial regulators issue report on inclusive finance development
None of the measures outlined above is particularly new, and this report broadly just reinforces regulators’ recent efforts to improve the financial system – by addressing deficiencies among …
China Everbright Group gets new vice chairman
Wu has a long background in finance. He has worked in high-level positions at the China Securities Regulatory Commission (CSRC), where he was driving the …
Daiwa applies to open foreign-controlled securities JV
The establishment of the JV will mark Daiwa’s return to the China market after having exited in 2014 when it terminated its previous JV partnership with …
FTSE Russell decides not to include Chinese bonds
Despite the wider trend of inclusion for Chinese bonds in global indexes and Beijing’s push toward financial opening, FTSE Russell’s rejection of China’s government bonds suggests that …
MoF issues new finance supervision rules
Better supervision of financial firms is a major element of the wider de-risking effort being undertaken by Chinese regulators. These rules are designed to…
MoF issues new accounting rules
In yet another effort to control risk in the financial system, Chinese regulators are returning to accounting fundamentals to ensure that financial records are accurate reflections of economic reality and that capital…
PBoC chief says China is not in a hurry to conduct monetary easing
Yi’s comments are consistent with what regulators have said all year – that there will be no significant, or “flood-like,” stimulus for the economy. This means that the issues the economy faces will not …
Wealth management subsidiary of China Everbright Bank gets approval to commence operation
Given the fast-changing regulatory space around the asset management industry in China, foreign banks should closely monitor the progress of the various new domestic asset management subsidiaries to …
CICC teams up with Tencent in RMB 500 million fintech venture
As we have covered in several recent monitors, tie-ups between China’s big tech companies and its financial institutions are proliferating rapidly. Foreign financial institutions will need to…
Standard Chartered completes first offshore e-wallet cross-border RMB direct debit settlement transaction
Many foreign banks in China are naturally looking to increase their presence in cross-border payment facilitation – especially for e-payments. HSBC should ensure…
Agricultural Bank of China appoints new head
Newly appointed Zhang is filling a yearlong vacancy left by former ABC president Zhao Huan, who was appointed president…
PBoC releases second monthly LPR under new methodology
One of the PBoC’s biggest challenges recently has been weak transmission of monetary policy. While the central bank has lowered the wholesale cost of capital for banks – the banks have not been passing those lower rates on to …
Corporate social credit records to be used as basis for SME loans
This push is part of a broader suite of policy measures to support lending to private SMEs in China. So far, the measures have not been particularly effective…
CBIRC quizzes chief actuaries over annuity interest rates
The CBIRC’s latest attempt to de-risk the insurance sector centers around ensuring uniformity and compliance in the setting of interest rates – as well as the capping of rates to make sure that companies do not …
CBIRC strengthens on-site inspection framework
Chinese regulators continue to push for greater compliance across the financial industry as concerns about undisclosed problems mount in the wake of the Baoshang Bank takeover and similar issues at other regional banks. Regulators view onsite inspection, as well as building greater regulatory discipline…
CBIRC approves the establishment of China’s 19th private ban
We expect private banks to continue to be established in the coming years, as supplements to traditional citylevel banks. While these banks may not be major competitors for foreign banks operating in China, they may …
China Construction Bank and Xiaomi Finance enter fintech strategic cooperative agreement
As we have covered in several recent monitors, tie-ups between China’s big tech companies and its financial institutions are proliferating rapidly. Foreign financial institutions will need to…
China Life to debut China’s first internet life insurance company
Online insurance is still a nascent business in China and one which carries significant risk. In 2018, the premiums of the four extant internet insurance companies increased, but the companies still …
Data privacy crackdown affects consumer finance companies
The crackdown on these third-party risk profile providers will hurt consumer finance companies that do not have strong internal risk assessment capabilities. This effort is also part of the broader push to …