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Regulation

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  • The first products under the renminbi qualified institutional investor (RQFII) programme should launch as early as the first half of next year, according to Camille Thommes, director general of the Association of the Luxembourg fund industry (Alfi).
  • The People’s Bank of China (PBoC) has suspended the Renminbi Qualified Domestic Institutional Investor (RQDII) investment scheme after giving 'window guidance' to onshore custodian banks, two sources have told GlobalRMB.
  • The RMB seems set to weaken further despite the IMF's decision to give the currency reserve status on November 30. However, experts agreed a weaker RMB will not stop it from gaining ground as a global currency.
  • The IMF changed the weighting formula for its Special Drawing Rights basket ahead of the inclusion of the renminbi last month. However, using the old SDR formula to determine Chinese currency’s weight would have been preferable, according to a former IMF official.
  • The Basel Committee has had a charming festive tradition in recent years, dropping a major update to bank capital regulation in the week before Christmas. Big banks should expect a festive regulatory treat this year too.
  • The European Union’s Economic and Financial Affairs Council (Ecofin) got 10 of the 11 countries discussing a financial transaction tax to agree on elements of the levy on Tuesday, and are intent on continuing work on the rule in 2016.