Policymakers have for years tried to expand the role of direct financing and wean the economy off its traditional dependence on indirect financing provided by the banking system, which seems incapable of allocating financial resources adequately to the government’s priority areas.
Traditionally, Hong Kong was a gateway for foreigners into China. Its future lies in being a gateway for Chinese capital to the world.
The Swap Connect will increase the international appeal of China’s financial markets by giving foreign investors a way to hedge their exposure to Chinese fixed-income products.
This change has been on the cards for years and, while it was already being applied to the country’s three smaller stock markets, the two biggest bourses – the main boards in Shanghai and Shenzhen – were still operating under the old, time-consuming system.
Charles Li sure knows how to speak Beijing’s language – the Macau exchange may not have been devised by policymakers, but it certainly aligns with their objectives. To that effect, the exchange will be a novel trial balloon vis-à-vis Beijing’s push to expand capital access for small mainland firms.
This cut is all about helping banks help the property sector. In recent weeks
Polysilicon is a crucial raw material for solar panel production and silicon is key for making semiconductors, which are in just about every electronic device you can think of.
Developing a robust private retirement savings ecosystem checks multiple policy boxes. It will
These measures will save companies some money, and should help boost exchange-traded bond issuance at the margin, but they aren’t going to invigorate private sector bond markets on their own.
China’s regional commercial banks and rural lenders have been a source of endless problems for regulators. While combined they comprise less than 25% of the country’s banking assets, they present the biggest risks to financial stability.