CSRC calls for increased focus on long-term investing
Shannon Dong
Traditionally, banks have been the main source of funding for China’s economy, with capital markets playing little more than a supporting role. But that’s beginning to change…
Shannon Dong
43 posts
NAFMII launches dispute mediation center in Beijing
Beijing is in the midst of overhauling China’s capital markets so that they better serve the real economy. These dispute resolution mechanisms are one key piece of the puzzle…
Hong Kong moves a step closer to allowing mainland investors to trade stocks in RMB
Mainland money flowing into the Hong Kong stock market under the stock connect program does not escape China’s capital controls. So this plan won’t do much for RMB internationalization, but it will further integrate Hong Kong and mainland markets and eliminate exchange rate risk for mainlanders trading Hong Kong stocks…
PBoC expands digital yuan trial to 11 more cities
The expansion of the pilot program indicates the PBoC’s confidence that testing of the e-CNY has gone well so far. But while the systems and technology underpinning the e-CNY may be ready, it remains to be seen whether consumers are – there’s plenty of evidence that inertia and habit are holding back uptake of the central bank’s digital wallet, even at the pilot stage…
State-owned steelmakers look to settle more iron ore imports in RMB
There’s no mystery behind the desire of both the Chinese government and companies to increase RMB settlement in international trade. Doing business in RMB reduces foreign exchange risk and, more importantly, it helps lower geopolitical risks stemming from financial sanctions that could lock Chinese companies out of key raw material and resource markets…
Multiple Chinese companies look to raise cash in Switzerland
As the US – by far the world’s largest equity market – becomes less friendly to mainland companies, Chinese firms will get creative on how they raise cash in global markets. There will be an increase in private funding as well as upticks in capital raising in peripheral global markets, like those in Europe and Singapore…
FSDC meeting stems market turmoil, leaders promise policy consistency
The FSDC is doing what it can to stop the stock market slide, and thus far its actions have been largely successful. However, there is a substantial difference between short-term rhetoric aimed at stabilizing markets and the longer-term reforms necessary to bring these pledges to fruition…
CBIRC to tell pension insurance firms to clean up risky, short maturity products
The regulation essentially asks for pension insurers to return to their roots: providing vanilla retirement savings products. For now, regulators’ objection to personal pension guarantee management products seems to mainly be about their short maturity rather than how they’re invested…
CBIRC releases implementation rules covering reserves of non-life insurers
As China’s insurance sector continues to grow, developing a robust framework for ensuring companies have sufficient reserves will be crucial to overall financial stability. An insurer’s failure to meet payouts on the policies it has underwritten could have severe knock-on effects throughout the financial sector and could damage consumer confidence in insurance more broadly…
China Everbright appoints new chairman
On March 4, financial media reported that Wang Jiang, president of China Construction Bank Corp. (CCB), had been tapped to serve as chairman of China Everbright Group Ltd…