Regulation & Policy - All Articles

  • Market expects Connect for exchange bonds and RQFII reboot

    The Chinese regulators are planning to expand Bond Connect to cover exchange traded bonds, and are mulling changes to older access channels such as the qualified foreign institutional investor (QFII) scheme, according to market participants.

    • 29 Nov 2017
  • Banks rub hands on ‘crazy’ Bond Connect demand

    Demand from international investors to participate in Bond Connect is strong – with Ireland and Luxembourg-registered funds set to be the next group to join in once real-time delivery versus payment is introduced later this year, two bankers told the IFLR Asia Capital Markets Forum on Tuesday.

    • 29 Nov 2017
  • Backtracking on reforms not an option for China

    Foreign ownership reform in the Chinese financial sector is not only a landmark in the country’s opening up, but also a strategic move to rebalance US-China trade. But recent guidelines curtailing banking sector liberalisation appear to be a case of one step forward, two steps back for China. Now more than ever, Beijing must not let its caution around financial risk take over and undo its strategy.

    • 28 Nov 2017
  • The fintech revolution is here, says IFC

    Financial market participants will need to embrace the rise of new technology to survive the transition to a post-cash society, an area where China is taking the lead, Andi Dervishi, CIO and global head of fintech, e-payments and new finance at International Finance Corp (IFC), told a conference in Hangzhou.

    • 28 Nov 2017
  • Foreign investors buoyant on China investment, say experts

    Investors are broadly positive on the policy direction set by China’s 19th Party Congress, said experts at Euromoney’s Hangzhou Global Investment Conference on November 21.

    • 27 Nov 2017
  • The week in renminbi: China unifies asset management rules, Philippines picks BOC for debut Panda, UBS AM launches first onshore equity fund

    China’s financial regulators publish rules to standardise asset management regulations, the Philippines confirms Bank of China for its Panda bond debut, and UBS Asset Management’s China arm launches the first onshore equity fund by a foreign asset manager.

    • 20 Nov 2017
  • RMB round-up: PBoC eases liquidity, Stock Connect turns three, Neuberger Berman nabs PFM licence

    The People's Bank of China (PBoC) conducted its largest weekly liquidity injection since January, the Stock Connect scheme celebrates its third anniversary this week, the Chinese authorities have extended a capital gains tax waiver, and Neuberger Berman was granted a private fund management licence for its China operation.

    • 17 Nov 2017
  • The bold and the beautiful

    The hubbub over China’s five-yearly Party Congress is now behind us and the country’s regulators are ready to get back to business. In that vein, unusually forceful comments from Zhou Xiaochuan, outgoing governor of the People's Bank of China, on the urgency of deleveraging are more than welcome.

    • 14 Nov 2017
  • Banks lukewarm on China’s big bang

    After years of anticipation, China has finally opened the door to majority foreign ownership across its financial sector. But instead of reacting with jubilance, international banks appear cautious as they await more details from regulators and remain vigilant of the challenges ahead, ranging from fierce local competition to licencing procedures.

    • 13 Nov 2017
  • The week in renminbi: Interbank derivatives market opens up, Silk Road Fund and GE set up BRI investment platform, SGX USDCNH futures volume down in October

    The People’s Bank of China gives foreign institutional investors greenlight to trade derivatives in the interbank bond market, Silk Road Fund sets up investment platform with a General Electric (GE) subsidiary to target Belt and Road energy projects, and the trading volume for Singapore Exchange (SGX) offshore renminbi (CNH) futures falls in October.

    • 13 Nov 2017
  • RMB round-up: PBoC says foreign companies to be treated equally, Invesco and Value Partners win PFM licences, Goldman sets up fund with CIC

    The deputy governor of the People’s Bank of China says foreign companies will be treated on an equal basis with their Chinese peers, two foreign fund managers obtain private fund management (PFM) licences through their wholly foreign owned enterprises (WFOE), and Goldman Sachs sets up an investment fund with China’s sovereign wealth fund targetting US companies.

    • 10 Nov 2017
  • China ups cap on foreign ownership of financial institutions

    Authorities in China are removing the cap on foreign ownership on a series of financial sector joint ventures (JVs), Zhu Guangyao, deputy minister at the Chinese Ministry of Finance (MoF), said on November 10. The news came on the heels of US president Donald Trump's visit to China.

    • 10 Nov 2017
  • In capital markets, China needs to learn the right lessons from West

    China has long been cautious about opening up its capital markets as it learn from the lessons of other economies. But while such prudence has helped China avoid a crisis, it must not turn succumb to hubris and a wholesale rejection of the West’s experience.

    • 09 Nov 2017
  • China formally launches FSDC, picks vice-premier as chair

    The State Council officially launched the financial stability and development committee (FSDC) – a new organ to co-ordinate financial reform and regulations – on November 8, appointing Ma Kai, vice-premier, as chairman of the committee.

    • 09 Nov 2017
  • Investors seek tax, FX clarity on Bond Connect

    Many international investors are refraining from participating in Bond Connect because they still have little clue on how their investments will be taxed, as well as hoping for more institutions to offer FX liquidity to the scheme, according to market participants.

    • 01 Nov 2017