China insurance watchdog vows to combat speculation
Chairman Xiang Junbo said the China Insurance Regulatory Commission, will never let insurance become a “rich man’s club,” Sina Finance reported on Wednesday. He also said the watchdog will curb “aggressive pricing” and “unreasonably high returns,” and vowed to “severely punish” short-term speculation by insurers. It is the clearest indication of a clampdown on insurance companies speculating on management of listed companies, such as Baoneng Group’s attempted takeover of China Vanke.
Financial industry watchdogs to unify rules on asset management products
A unified framework is being designed to regulate asset management products, The Paper reported, citing the China Insurance Regulatory Commission (CIRC). The People’s Bank of China and three national watchdogs on banking, securities and insurance are working on the framework.
Commercial banks’ bad loans at US$220 billion in fourth quarter
The outstanding balance of commercial banks’ non-performing Loans (NPLs) stood at 1.51 trillion yuan (US$220 billion) in the fourth quarter of 2016, the Securities Daily said on Thursday. The China Banking Regulatory Commission said the bad loan rate was 1.74%, a slip of 0.02% from the previous quarter.
Urban housing prices almost plateau compared with last month
New residential property prices in first and second-tier cities have flattened in January compared to last month, the National Bureau of Statistics said on Wednesday. But prices in third-tier cities saw an uptick of 0.6% month on month, it said. Guangzhou is the only one among the major cities of Beijing, Shanghai and Shenzhen, which has seen a 0.6% rise from a month earlier. Home prices in Shenzhen dropped 0.5% in the same period.
China Net Center acquires South Korea’s CDNetworks for US$190 million
One of the country’s leading ISP providers, China Net Center, has acquired a South Korean content delivery company for 1.275 billion yuan (US$190 million) from Japan’s telecommunications operator KDDI, Caixin reported on Wednesday evening. The acquisition, to be completed on March 24, will give China Net Center a controlling 84.96% share in CDNetworks, helping it to expand overseas.
Leadership reshuffles ahead of 19th National Congress
Six provinces have seen leadership reshuffles in 2017 ahead of the 19th National Congress, Caixin reported on Wednesday evening. Hainan, Guangdong, Gansu, Ningxia, Henan and Zhejiang have seen leadership movements within the provincial party standing committee. Some promotions like former scholar Liang Yanshun are significantly “fast-tracked,” according to the report. Liang, who was parachuted from the party school into the post of Gansu propaganda chief in February last year, is now a minister in the provincial committee. Others include Cheng Ronghua, a Hunan bureaucrat who was elected into the Hunan party standing committee in November and promoted to minister in the Ningxia party standing committee in just three months, the report said.
Vice Governor of Yunnan holds four positions
Zhang Taiyuan, the vice governor of Yunnan province, is also the secretary of the Communist Party of China’s Politics and Law Provincial Committee and holds two other official positions, reported Caixin on Wednesday evening. Lingcan News discovered Zhang had four positions when he used his official title as a secretary for the first time at a provincial party inspection on Tuesday, it said.