CBIRC announces pilots to encourage private pension provision

China has been talking about overhauling its creaking pension system for at least 20 years, and while there have been changes, they have been far too cautious and limited to tackle what is an increasingly urgent problem. The government has been slow to open up the corporate annuity market and even slower to develop the personal pensions market, which is now becoming a top focus…
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NPC deliberates Futures law

As in other areas of its financial markets, China is trying to balance greater liberalization of derivatives trading with sufficient regulation to maintain overall financial stability and offer ample protection to investors. The draft Futures Law is an attempt to put guardrails in place to guide the further development and opening of the derivatives market…
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Beijing expands QFLP program

The expansion of Beijing’s QFLP program is part of a broader push to open up the services sector in Beijing. In September 2020, the State Council approved a plan, formulated by the municipal government and the Ministry of Commerce, to set up demonstration zones and pilot programs to further open the capital’s services sector. The plan included liberalizing the scope of public market investment through the QFLP pilot program…
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PBoC, NDRC and CSRC release unified catalogue of industries and projects eligible for green bond funding

The updated Catalogue is a major step forward in implementing China’s climate change commitments to reach peak emissions by 2030 and carbon neutrality by 2060. Bringing the three regulators together behind one set of classifications and rules is no mean feat –– having one single reference point will have a significant impact on the domestic green bond market and play a key role in helping Beijing ramp up its support for green finance…
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PBoC releases updated anti-money laundering measures

Aside from complying with the requirements of the FATF, the PBoC’s efforts to upgrade and improve anti-money laundering regulations are also key components of the government’s financial derisking campaign and efforts to combat financial crime. The inclusion of nonbank financial institutions (NBFIs) in the regulations is aimed at addressing the criticisms in the FATF’s evaluation report, and ensuring that they are subject to the same level of regulatory supervision as banks and have adequate internal control systems and risk management policies in place…
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CBIRC issues measures to encourage lending to micro and small enterprises

Inclusive finance has been high on the government’s agenda for several years as it works to improve financial support for groups traditionally underserved by banks who see them as less financially rewarding and riskier. MSEs have long been shunned by banks partly because they have little collateral to pledge when they apply for loans, hence the CBIRC’s emphasis on promoting the use of movable property as security…
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