CBIRC issues rules to tighten regulation of trust companies’ satellite branches

This notice is part of a broader effort by the CBIRC to overhaul the trust industry, improve risk control and governance, and strengthen regulation after a series of scandals, defaults, and illegal activities that left investors nursing heavy losses. After years of deliberation, the commission in March released the final version of rules on the classification of trust companies’ trust businesses…
View Post

CBIRC tells insurers to reduce rate of return on new products

Falling interest rates have raised regulators’ concerns that insurance companies could be exposed to losses from negative interest rate spreads. There’s also concern that competition for new business may drive some insurers to offer policyholders higher returns than they can earn on their investments…
View Post

CBIRC announces trial program to convert life insurance policies into long-term care benefit plans

China’s aging population is increasingly putting strain not only on the country’s creaking pension system, but also on the generation of children born during China’s One-Child Policy era. The pressure on young adults to either care for their aging parents on their own or to find alternative solutions to ensure that they receive adequate care risks becoming both an economic liability and a thorny social problem…
View Post

CSRC calls for comment on proposed derivatives trading supervision rules

As the CSRC points out, these measures are largely aimed at getting China’s over-the-counter derivatives market aligned with international standards, as agreed upon by G20 leaders in 2009. Just as was the case with the Futures and Derivatives Law, this piece of complementary regulation serves to ensure the development of a more sophisticated, robust, and secure Chinese derivatives market…
View Post

CSRC issues draft of proposed rules to supervise futures firms

These measures, like the Measures for the Supervision of Derivatives Transactions, are complementary regulations that provide more detailed rules to implement the Futures and Derivatives Law, a key piece of legislation to build a more sophisticated capital markets system that aligns with international standards…
View Post