Featured Product

    PBC Announces Measures for Further Opening Up of the Financial Sector

    July 20, 2019

    On July 20, 2019, the Office of the Financial Stability Development Committee of the State Council announced a series of policy measures for further opening up of the financial industry, including allowing foreign-funded institutions to conduct credit rating business in China. On January 28, 2019, S&P Credit Rating (China) Co., Ltd. received approval to enter the Chinese interbank bond market to carry out all types of credit, including financial institution bonds, non-financial corporate debt financing instruments, structured products, and overseas main bonds. In the next step, PBC and CSRC will further promote the opening of the rating field, continuously expand the business scope of foreign-rated rating agencies, and allow more qualified foreign-rated rating agencies to carry out all types of credit rating services in the interbank bond market and the exchange bond market.

    The following measures are to be introduced toward external opening of the financial sector: 

    • Allow foreign-invested institutions to conduct credit rating business in China—they can rate all types of bonds in the interbank bond market and the exchange bond market
    • Encourage overseas financial institutions to participate in the establishment and investment of shares in commercial bank financial management subsidiaries
    • Allow overseas asset management institutions to establish joint ventures with Chinese banks or insurance companies to establish wealth management companies controlled by foreign parties
    • Allow overseas financial institutions to invest in the establishment and participation of pension management companies
    • Support foreign investment to establish or participate in currency brokerage companies
    • Advanced the transition period from the 51% increase to the 100% for foreign-invested foreign-invested stocks from 2021 to 2020
    • Introduced measure related to cancellation of domestic insurance companies holding a total of not less than 75% of the shares of the insurance asset management company, allowing foreign investors to hold more than 25% of the shares
    • Relax the conditions for entry of foreign-invested insurance companies and cancel the 30-year business life requirement
    • Advance the time limit for the cancellation of foreign shares of securities companies, fund management companies, and futures companies in 2021 to 2020
    • Allow foreign-funded institutions to obtain the Class A lead underwriting license for the interbank bond market
    • Further facilitate the investment of overseas institutional investors in the interbank bond market

    As the internationalization process of China's financial market continues to accelerate, the introduction of international credit rating agencies to carry out rating business in China is conducive to meeting the diversified needs of international investors and is also conducive to promoting China. The improvement of rating industry rating quality has positive significance for the healthy development of the financial market in China.

     

    Keywords: Asia Pacific, China, Banking, Insurance, Foreign Funded Institutions, Credit Ratings, Asset Management Companies, CRA, PBC

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4167