CBIRC summons insurers over guaranteed returns

The problem facing China’s insurers is the opposite of the one recently confronted by Silicon Valley Bank (SVB). As US interest rates rose, the value of SVB’s stock of treasury holdings declined, making it increasingly difficult for the lender to manage its liquidity needs…
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CBIRC issues final rules on classification of trust companies’ trust business

These regulations are part of the CBIRC’s multi-year efforts to clean up the trust sector, which used to be at the heart of China’s shadow banking system. Following the implementation of new asset management rules in 2018, trust companies’ shadow banking activities – such as capital pooling and illicit channeling – were put under stricter scrutiny and reduced significantly in size…
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CBIRC abruptly suspends bond quote data feeds

The abruptness and opacity of the move won’t help engender trust in China’s financial regulatory apparatus – something that’s a key goal for policymakers – nor is it an encouraging sign for foreign financial firms operating on the mainland, either…
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China creates two new Party-led financial planning commissions

Xi Jinping was clearly unhappy with the ability of the existing institutional structure to deal with mounting financial risks – including property and local government debt on the domestic side, and sanctions on the international side – and wanted the Party more firmly in control. Xi himself is likely to head the CFC, as he does the other four Party commissions…
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PBoC cuts RRR by 0.25%

RRR cuts aren’t stimulus. The PBoC uses them to lower bank funding costs and ensure that there is sufficient liquidity in the financial system…
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