Trivium

756 posts

PBoC, CBIRC publish draft regulations for systemically important banks

  • Trivium
  • Posted on
These draft rules are the latest in a series of new regulations aimed at complying with international standards set by the Financial Stability Board for systemically important financial institutions and banks. Having basically set the rules for China’s G-SIBS, regulators are now turning to the more complex and troublesome D-SIBS who are financially weaker and more likely to struggle to raise capital …
View Post

PBoC issues rules governing hiring of senior executives at financial holding companies

  • Trivium
  • Posted on
These interim provisions are the latest in a long line of policies aimed at boosting regulatory supervision for companies with operations in financial services, which had hitherto operated with insufficient regulatory oversight. The fact that authorities have been gradually building up the regulatory framework and scrutiny over the appointment of senior personnel is seen as a crucial part of these efforts …
View Post

PBoC to allow Hainan greater yuan convertibility rights as part of package to promote financial liberalization in the province

  • Trivium
  • Posted on
The Hainan FTP is a pet project of Xi Jinping, who is reported to have personally designed, arranged, and promoted it and called on the government to support “daring reforms and innovation.” As a result, the project is as much a political task as an economic one and all ministries and agencies are compiling action plans related to the areas under their jurisdiction …
View Post

PBoC proposes new rules for credit rating agencies as part of sector shakeup

  • Trivium
  • Posted on
These regulations are part of a long march to clean up problems in the bond market, implement the government’s commitment to ending the implicit guarantee that defaulting corporates will get a bailout, and develop markets where risks are correctly priced and investors bear the cost of defaults. China needs to develop a deep and liquid bond market to provide financing for its corporate sector and decrease dependence on the banking system for credit …
View Post