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

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol

    HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.

    October 16, 2020 WebPage Regulatory News
    News

    FSB Sets Out Roadmap for Transition to Alternative Reference Rates

    FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).

    October 16, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on BRRD2 Transposition

    HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).

    October 15, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on CRD5 Transposition

    HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.

    October 15, 2020 WebPage Regulatory News
    News

    BoE Publishes Reporting Schedule for Statistical Returns

    In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.

    October 15, 2020 WebPage Regulatory News
    News

    EC Welcomes Declaration by Member States on EU Cloud Federation

    EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.

    October 15, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Issuance of Covered Bonds by Banks in Singapore

    MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore.

    October 15, 2020 WebPage Regulatory News
    News

    FDIC Selects Technology Companies for Rapid Prototyping Competition

    FDIC has selected 14 technology companies—including Accenture Federal Services, LLC, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the next phase of the rapid prototyping competition.

    October 15, 2020 WebPage Regulatory News
    News

    GLEIF Defines New Validation Agent Role for Financial Institutions

    GLEIF announced that financial institutions worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new “validation agent” role within the Global Legal Entity Identifier (LEI) System.

    October 15, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5979