Financial Regulation News in China
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Treasury Bonds Suggested to Ease Local Governments’ Debt Burden
A former adviser to China’s central bank has suggested issuing treasury bonds to ease the debt burden of local governments, which are struggling under the weight of debt. This move is seen as a potential solution to address the fiscal gulf between China’s central and local governments.
Hong Kong’s Biggest Lender Fined Record HK$24 Million for Illegal Incentives
Hong Kong’s biggest lender was ordered to pay a record fine of HK$24 million for offering incentives to “unauthorised intermediaries” to get corporate clients to join its Mandatory Provident Fund scheme in 2020 and 2021.
New Rules Professionalize Debt Collections Industry
Banks and financial service companies in China are recruiting more educated and tech-literate personnel for their debt collections, a reflection of new rules that have professionalized the industry.
Asset Recovery Strategy Crucial to China’s Financial Future
China’s city state has announced an asset recovery strategy aimed at tackling the country’s high levels of debt. Experts say that while this is an important step, more needs to be done to ensure healthy and sustainable development.
Launch of Funds in China by International Asset Managers
Eight international asset managers, including BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, are seeking to launch funds in China.
Combating Money Laundering and Terrorism Financing
China’s financial regulators have been taking steps to combat money laundering and terrorism financing, with PM Lawrence Wong stating that the city state is determined to safeguard its reputation.
Opportunities for Financial Services Industry in DeFi and Metaverse
An executive at the Hong Kong Institute for Monetary and Financial Research believes that DeFi and metaverse will open up opportunities for the financial services industry.
Plans to Manage Digital Lender’s Overseas Business
WeBank’s Hong Kong subsidiary has announced plans to manage the digital lender’s overseas business, offering services to countries and regions covered by the Belt and Road Initiative.
Anti-Corruption Investigation Underway at CSRC Branch in Jiangsu Province
The chief of a CSRC branch in Jiangsu province is under anti-corruption investigation.
AI Could Boost Chinese Banks’ Fee-Based Income
AI could lift Chinese banks’ fee-based income to as much as 40% from 30% currently, according to an executive at the Hong Kong Institute for Monetary and Financial Research.
Central Bank to Trade Bonds in Secondary Markets
A former People’s Bank of China official believes that the conditions are ripe for China’s central bank to trade bonds in the secondary markets, but it will be a gradual process.
Support for Slumping Property Market Announced
Beijing has announced plans to support China’s slumping property market, but rating agencies S&P Global and Fitch have expressed skepticism about the move.
Policy Toolbox Will Not Include Drastic Measures
China’s central bank governor has stated that the policy toolbox will not include any drastic measures to address the country’s economic challenges.
Delisting Risk for Smaller Companies in Shenzhen
Chinese companies trading in Shenzhen have underperformed those listed in Shanghai this year, a trend that underscores the delisting risk faced by smaller companies and investors’ penchant for big industry leaders amid a challenging macro environment.
Oversight and Punishment of Irregularities
The CSRC has vowed to step up oversight and severely punish irregularities, such as illegal stake reductions by big shareholders taking advantage of short selling.
Amending Funds Recognition Scheme with Hong Kong
Mainland China’s top securities watchdog has proposed amending a funds recognition scheme with Hong Kong in the latest move to boost cross-border trading and capital flow between the two markets.
Ban on S2C from Listing Its Shares
The Shanghai Stock Exchange has barred S2C, a local chip maker, from listing its shares in the next five years, the first such moratorium since China rolled out its registration-based IPO system across the board in 2023.
Crypto Market Improving Outlook for Deal Flow
A surging crypto market is improving the outlook for deal flow, highlighted by recent acquisitions, following the approval of bitcoin and ether ETFs.
Plans to Keep Stock and Derivatives Markets Open During Typhoons or Torrential Rains
Hong Kong has announced plans to keep its stock and derivatives markets open during typhoons or torrential rains, with a view to making the change in September.
Securities Watchdog Aims to Ensure “Survival of the Fittest”
China’s securities watchdog believes that its moves to raise the bar for IPOs, expel unqualified firms from stock exchanges, and exercise greater scrutiny are aimed at ensuring the “survival of the fittest”.
China Merchants Shekou Holdings Hires KPMG
China Merchants Shekou Holdings, the property arm of the state-owned group, has announced plans to hire KPMG, reversing its decision to appoint scandal-plagued PwC.
State-Owned Firm Terminates Contract with PwC
State-owned China Cinda Asset Management is also the latest major client to terminate its contract with PwC, following several big firms that cut ties with the auditor amid growing concerns about possible financial fraud tied to embattled developer China Evergrande.