Regulator hits Huaxia Life, Soochow Life with 3-month ban
Huaxia Life Insurance and Soochow Life Insurance have been barred from registering new products for three months and must suspend all online sales of existing ones, Sina Finance reported on Wednesday, citing a notice on the China Insurance Regulatory Commission’s website. China’s insurance regulator has recently been cracking down on insurers found to be aggressively buying A shares because of concern that they are piling on too much short-term risk contrary to their core function.
Cosun Group head under police investigation over bond default
Cosun Group Chairman Wu Ruilin has been placed under police investigation, Caixin reported on Wednesday night. Cosun Group defaulted on bonds valued at more than 321 million yuan (US$46 million) last week. Zheshang Property and Casualty Insurance has said it would compensate some holders of the bonds, even though the bank that it had believed to have provided as guarantee said the documents had been forged.
Trust industry to be thrust into light with regulatory framework
The trust industry will be divided into eight categories based on use of funds – such as credit trusts and equity trusts, according to Yang Jiacai, assistant to the chairman of China Banking Regulatory Commission, Caixin reported on Wednesday. The move is intended to make trusts more transparent and regulated, and exclude them from the area of shadow banking, Yang said.
Home prices in major cities unlikely to drop in 2017, experts say
Residential property prices in tier-1 and tier-2 cities are unlikely to drop in 2017, even if the volume of transactions does, according to a group of experts cited by Sina Finance on Wednesday. China has rolled out a series of measures recently aimed at cooling down the property sector and establishing what the government calls a “healthy market.”
China’s economically developed regions running out of farmland
The most developed regions of China face a shortage of farmland following years of nonstop economic growth, according to a report by the Ministry of Land and Resources released on Wednesday. Most of the nation’s arable land reserves are concentrated in the midwest, the report added.
PBOC condemns report of yuan dropping below key support
Some media reports wrongly stated that the yuan fell through the psychologically important mark of 7 to the US dollar, the central bank said in a statement issued late on Wednesday, adding that it reserved the right to hold the organization responsible. The onshore yuan has been trading smoothly between 6.9500 and 6.9666, the People’s Bank of China said. The statement came shortly after Bloomberg data showed the yuan sliding through the key defensive line. The US financial news and data provider corrected its information.
Welcome flag raised to international shipping at free trade zones
The Ministry of Transport’s new Ship Registration Act has lifted the stipulation that vessels registering at China’s pilot free trade zones must be at least 50% domestically owned, Xinhua reported on Wednesday.