Shannon Dong

43 posts

C-ROSS Phase II goes into effect

As China’s insurance sector continues to grow, developing a robust risk-focused framework that ensures 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…
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PBoC cuts MLF rate

This MLF cut is more or less in line with what the PBoC has been signaling for much of the past year: the central bank will offer supportive monetary policy at the margins, targeted to meet the needs of specific sectors or the needs of a specific time period – as opposed to large-scale, indefinite stimulus…
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Anti-corruption Agency investigates China Life chairman

The CCDI’s focus on the financial sector is part of Xi Jinping’s campaign to contain financial risks and also part of his sweeping anti-corruption campaign. In recent years, regulators have made a special effort to root out the dodgy dealings that have long been a fixture of China’s fast-developing financial system…
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PBoC issues draft measures to support RMB-denominated cross-border ecommerce

China’s cross-border ecommerce has grown massively in recent years – official data show that from 2016-2019 the compound annual growth rate was 55.1% and in 2020 trade amounted to 1.69 trillion yuan, an increase of 31% on 2019. But that’s still a drop in the ocean compared with traditional cross-border trade so it still needs supportive policies to cut red tape and make the settlement of trade easier…
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SAFE to relax rules on cross-border trade and investment

SAFE continues its never-ending quest to open up cross-border investment while keeping a lid on risk. If SAFE can make life easier for companies by better facilitating international trade and granting them a bit of leeway in forex management, that will go some way toward helping Beijing’s financial opening strategy, but as ever, gradual, is the operative word…
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Central bank launches digital yuan app on domestic app stores

The public are clearly curious about the central bank digital currency, but the real question is whether that interest will stick. Despite all the media hype, we still haven’t seen evidence that the e-CNY offers a strong incentive for consumers to switch away from WeChat Pay and Alipay, which together account for more than 95% of China’s mobile payment market…
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