Central bank launches bill swap operation

The CBS facility was created to boost liquidity for perpetual bond issuance by banks – allowing banks to raise capital via these instruments more easily. We expect the PBoC to gradually increase usage of the CBS facility as it seeks to …
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CSRC to move forward with capital market reforms

The reforms proposed by the CSRC are clear indication of what’s on the horizon in the regulator’s efforts to improve and open capital markets in China. Given that Yi Huiman has only been in the top job at the securities regulator for about six months …
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China abolishes QFII and RQFII quotas

The scrapping of QFII and RQFII quotas is unlikely to have a significant effect on portfolio investment into China. At the end of August, only USD 111.4 billion of the QFII program’s USD 300 billion quota had been used. The QFII and RQFII schemes have been …
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CCCDR focuses on improving key financial infrastructure

The fact that the CCCDR discussed these issues highlights that top policymakers are still highly focused on improving the financial system – and ensuring that it does a better job of financing real economic growth. Foreign financial institutions operating in China should …
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PBoC ups liquidity support in September

The RRR cut does not represent a marked increase the scale or pace of policy easing. Rather, it is in line with previous moves to support bank liquidity as policymakers urge banks to lend more aggressively to small, private companies. We expect liquidity to …
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