PBoC, SAFE convene meeting with foreign financial institutions, pledge more support
Jing Yan
This meeting is just the latest effort in a spate of moves to better engage with foreign companies. But it wasn’t a gamechanger…
Jing Yan
10 posts
Mainlanders return to Hong Kong insurance market in droves
COVID-19 restrictions decimated travel between mainland China and Hong Kong and essentially eliminated mainlanders’ ability to buy insurance products in the city. That state of affairs is clearly over, and the fact that mainland citizens are purchasing Hong Kong policies at rates even higher than they were before the pandemic suggests that appetite for Hong Kong insurance products remains organically high…
Stock exchanges tighten scrutiny of program trading
These rules have long been in the works and are necessary to comply with provisions of the Securities Law.
That said, it’s also no coincidence that the measures were released in conjunction with the slew of recent actions to bolster stock prices in the wake of the Politburo’s July call to “enliven capital markets and restore investor confidence…”
State Council releases plan to develop Shenzhen-Hong Kong technology cooperation zone
Hong Kong has world-class universities and a sophisticated, internationally integrated financial system. Shenzhen has one of the world’s highest concentrations of tech companies…
Regulators announces numerous measures to reform equity markets, boost prices
Some of these measures are clearly aimed at stimulating short-term investor appetite to purchase stocks, and to hopefully increase market confidence. But they are also a genuine attempt to make markets more functional, accessible, and efficient in the long term, so that more investor and household cash flows into equity markets as a matter of course…
PBoC releases Q2 monetary policy report
The PBoC’s comments reinforce the view that China’s authorities are convinced they have a winning policy mix and intend to stick with it. We don’t share their optimism…
PBoC completes overhaul of nationwide branch network as part of government restructuring plan
This latest reorganization makes a lot of sense. First, it’s a recognition that the regional branches established 25 years ago didn’t operate effectively…
PBoC cuts LPR rates
The disappointing rate decline reflects the PBoC’s concern that widening spreads between US and Chinese interest rates will further weaken the RMB and that eroding bank profits by narrowing net interest margins (NIM) will destabilize the financial system.
The lower one-year LPR will provide some relief to firms seeing rising real costs of credit due to deflationary producer prices…
NFRA approves seven firms to set up reinsurance operations in Lingang FTZ
The speed with which these approvals were processed signals regulators’ intent to accelerate the development of the reinsurance industry. China’s reinsurance market remains underdeveloped in relation to its fast-growing primary insurance market…
Regulators urge financial institutions to boost lending, support for the real economy
Banks have traditionally come to the rescue in previous economic downturns by pumping credit into infrastructure and housing. That’s no longer a viable solution…