State Council relaxes regulations in some FTZs applicable to foreign financial firms
Despite the increase in geopolitical tensions, notably between China and the US, Beijing has said it remains committed to further integrating into the global economy, opening up its own economy and attracting foreign investment, especially in financial services…
Major mutual funds cut management fees following CSRC guidance
Large Chinese mutual funds have plenty of space to make these cuts. The reductions may hurt small operators, but it appears regulators have already figured that eventuality into the rollout…
Cyberspace regulator signs GBA data transfer MoU with Hong Kong
Beijing is trying to strike a fragile balance with its cross-border data regulations, and the jury is out on whether data security concerns will hamper China’s concurrent goal to develop data trading and the digital economy…
Big banks further reduce rates on USD deposits
These moves will have little impact on exchange rates. Most firms can still hold USD assets offshore, where they can earn a good deal more than what Chinese banks are offering…
Pan Gongsheng appointed as PBoC Party secretary
Pan’s appointment raises a lot of questions about the future of the PBoC. Given that Pan isn’t a member of the Central Committee, does it signal diminished influence and independence for the monetary authority…
PBOC releases measures to improve the administration of central bank deposit account services
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June foreign financial institution approvals and specific financial opening developments
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Shanghai launches reinsurance trading market
China’s efforts to turn Shanghai into a reinsurance hub date back to at least 2019…
HKEX launches Dual Counter Model
This is the latest effort by Beijing to broaden the supply of RMB-denominated investment products available offshore as part of its long-term strategy to internationalize the Chinese currency…
Hengqin, Nansha, and Qianhai look to incentivize offshore fund investment
Now that China has reopened after three years of strict COVID controls, smaller cities and less developed zones within the GBA, are stepping up action to ensure they make progress on one of Xi Jinping’s pet initiatives. Despite geopolitical tensions, policymakers still view foreign capital as vital to developing the mainland part of the GBA and, more broadly, to China’s overall economic and “green” development and efforts to move up the value chain…
Hong Kong insurers see boom in sales to mainland visitors
The strong rebound in sales is hardly surprising given the difficulty that mainland residents faced in traveling to Hong Kong during the implementation of China’s zero-COVID policy. Moreover, insurance products will continue to prove attractive as mainland consumers look for stable, low-risk investment vehicles amid rising global interest rates and increasing economic uncertainty in China…
PBoC solicits opinions on increasing oversight of bond valuation industry
At their core, these measures are about formalizing the structures behind bond pricing and price discovery. The current lightly-regulated, largely informal valuation system begets a lack of transparency that can lead to mispricing, which, in addition to injecting uncertainty and risk into the financial system, makes investors less confident in the bond products they are buying…
Fang Xinghai delivers speech highlighting financial reform and opening progress
In his speech, Fang talked a lot about what has been done and said nothing about what will be done. In regards to the opening policies that Fang mentioned, we expect more experimentation with RMB internationalization through Hong Kong capital markets and that select Chinese companies will continue to raise capital via GDRs…
PBoC cuts LPR rates
The LPR cuts will help ensure access to cheap credit for businesses and households. But credit supply isn’t the problem, credit demand is the problem – and that’ll remain low until consumer and business confidence returns…
Beijing approves long-awaited PE industry regulations
As policymakers double down on channeling more capital toward tech innovation, it’s no longer tolerable for the PE industry to oversee itself…
Second-tier banks cut deposit rates
It’s not entirely clear what financial authorities want to achieve here. Do they want to bolster banks’ profits, which have been squeezed by narrowing margins? Or are they laying the groundwork for lower lending rates by first reducing bank funding costs?
PBoC cuts MLF rate
Interest rate cuts may help those parts of the economy that are overly indebted and struggling to meet their financial obligations – namely local governments and property developers, but it will do very little for the broader economic recovery…
PBoC cuts SLF rate
When taken with large banks’ coordinated reduction in deposit rates this month, it’s clear that authorities are lowering bank funding costs as a prelude to reducing lending rates for end-borrowers…
New financial regulator disclosed its immediate work priorities
The NFRA has inherited the duties of its predecessor, the CBIRC. However, Zhang’s comments could be our first insight into what additional priorities the NFRA is focused on…
The police force vows to strengthen the fight against securities crime
The MPS isn’t the only government agency that wants to root out financial sector malfeasance. Li Xi, the new anti-corruption czar, has put the financial sector on notice that it is in for greater scrutiny from the anti-corruption watchdog (CCDI) on his watch…