Banking regulator announces new requirements to curb liquidity risks
1st March 2018
• To reduce systemic financial risk, the use of inter-bank borrowing is discouraged. • Shadow banking activities will slow down as they are now...
More• To reduce systemic financial risk, the use of inter-bank borrowing is discouraged. • Shadow banking activities will slow down as they are now...
More• The new policy will slow the expansion of a significant portion of shadow banking activities. • Users of affected shadow banking products are likely...
More• Existing regulatory loopholes will be closed to address rising financial vulnerabilities. • The Chinese central bank has gained additional authority...
More• The new bond connect between the mainland and Hong Kong will make it easier to invest in China’s domestic bond market. • This program, if successful...
More• Firms that choose to list publicly through the back-door listing approach are now effectively subject to the same requirements for formal initial...
More• Financing and taxation tools are deployed to both stimulate green development and punish polluters. • Sustainable development related businesses...
More• Foreign institutional investors can obtain investment quotas more easily. • Allowing more foreign investment in the securities market can help to...
More• Having launched the Shanghai-Hong Kong stock connect, Beijing greenlights the much anticipated Shenzhen-Hong Kong stock connect. • The aggregate...
More• Chinese firms now have an easier time borrowing from abroad. • The central bank is increasingly using the Macro-Prudential Assessment System (MPA)...
More• Facing a rapid build-up of risk in the Internet finance sector, Beijing begins to put a lid on its scope and to prohibit speculative investment on...
More• Liberalizing the bond market will increase the supply of capital, hence reducing the overall cost of borrowing. • Opening up this market also...
More• The People’s Bank of China (PBOC) hopes to reduce loopholes and curb regulatory arbitrage opportunities by using the Macro Prudential Assessment...
More• This move increases competition in the banking sector by eliminating guaranteed net interest margin. • Smaller banks can compete for deposits by...
More• The market will be a bigger factor in determining the RMB-USD exchange rate. • The reform is meant to stabilize the RMB exchange rate against a...
More• The government believes Internet finance can be an answer to the problem of insufficient financing for small and medium-size companies. • At the...
More• The central government opened its protected banking sector to private capital. • Introducing private capital should bring more competition among...
More• Policy banks now have more dry powder to provide low-cost financing for state projects. • These state banks will play a bigger role in China’s...
More• Setting up such a system is intended to create a more level playing field for smaller Chinese banks. • The move paves the way for deposit interest...
More• More Chinese companies will be able to issue bonds for financing rather than relying exclusively on bank loans. • This move, in principle, should...
More• Foreign banks can now more easily enter and expand in the China market. • Many more restrictions on foreign banks nonetheless remain intact, likely...
More• Insurance companies are now allowed to make riskier investments to get higher returns for their customers. • Chinese insurers’ capability in...
More• Beijing launches another effort to reform an immature capital market to better support the real economy. • The central government aims to promote...
More• Interbank lending exacerbates the banking sector’s fragility, and how this policy is implemented will have first-order consequences for China’s...
More• Marking a further opening of China’s financial market, foreign investors can now easily invest in the Shanghai stock exchange via Hong Kong. • For...
More• Companies in the SHFTZ can freely repatriate their onshore cash to offshore. • Borrowing costs are lowered as offshore financial intermediaries can...
More• This move expands yet another channel for rural access to credit. • Since more than 80 million rural households own some forestry land, this reform...
More