The Chinese central bank has announced that it will raise the centralised customer deposit ratio for payment companies to roughly 50% from around 20% at present, as part of efforts to tighten regulation of the burgeoning fintech sector.
China’s central bank has approved “provisional reserve fund drawing arrangements” (临时准备金动用安排) on the final trading day of 2017 for the purpose of shoring up liquidity during the 2018 Chinese New Year.
Chinese President Xi Jinping has signalled that stable growth, expediting reform, structural adjustments and risk prevention will be the key economic work themes for Beijing in the upcoming year.
The China Banking Regulatory Commission plans to target the country’s colossal trust industry in 2018 as part of ongoing efforts to curb shadow banking activity.
The breakneck growth of China’s shadow banking sector in the decade since the Great Financial Crisis has heightened the country’s vulnerability to systemic financial calamity.
China has taken the international lead in IPO’s this year with a record number of A-share listings.
The China Banking Regulatory Commission says it will provide foreign lenders with a more even playing field when it comes to accessing the country’s domestic market.
The Chinese government has signalled that it will step up reform of the country’s state-owned asset sector in the upcoming year, following widespread overhaul of state-owned enterprises in 2017.
Liquidity has become scarce and wholesale borrowing costs have risen across the board in the run up to the end of 2017.
Analysts expect growth in China’s M2 money supply to remain at historically low levels in 2018, following a year in which it tapped unprecedented lows.