Chinese shadow banking groups are taking their pursuit of regulatory arbitrage to remote parts of the country, searching for provincial regulators who are less capable of bringing them to heel.
The head of the People’s Bank of China has expressed concern about the potential impacts of the “excessively rapid and insufficiently cautious” emergence of cryptocurrencies such as Bitcoin.
Speaking at the inaugural meeting of the 13th National People’s Congress on 5 March, Chinese Premier Li Keqiang emphasised the central government’s ongoing commitment to combating systemic financial risk, while flagging an increase in the number of special bonds to be issued by local governments in 2018.
The People’s Bank of China released its 2017 Q4 China Monetary Policy Implementation Report (2017年第四季度中国货币政策执行报告) on 14 February, 2018, just prior to the start of the Lunar New Year.
Analysts expect heavy regulatory pressure to keep local government bond issuance at around 4 trillion yuan this year, roughly on par with the 2017 level.
The Chinese government has told the country’s banks to keep new renminbi lending steady in the lead up to the Lunar New Year, according to sources speaking to Caixin.
The state planning agency says that the role played by “new drivers” of economic growth in China is undergoing rapid increase.
The China Securities Regulatory Commission is planning to launch nation-wide on-site investigations of the country’s privately offered funds.
The People’s Bank of China announced the release of nearly 2 trillion yuan (approx. USD$316.28 billion) in temporary liquidity on Friday in order to meet heightened demand for cash in the lead up to the Chinese New Year, yet refrained from open market operations for a 12th consecutive trading day.
Hong Kong-based payment provider LianLian International has announced that it will join the RippleNet payment network that facilitates cross-border transactions via the use of blockchain technology.