PBOC pledges to maintain neutral monetary policy
The People’s Bank of China (PBOC) said it would continue to implement a prudent and neutral monetary policy and keep liquidity in the financial system relatively stable, Caixin reported, citing the China Financial Stability Report 2017. PBOC said it would give more prominence to financial risk controls since the country’s shadow banking sector lacks sufficient regulation, Sina Finance added.
Bitcoin ‘attracts speculation’ and is risky: PBOC report
The People’s Bank of China (PBOC) said that Bitcoin and other “virtual goods attract “speculation,” and hence “can be risky,” in its annual China Financial Stability Report, the Paper reported. The PBOC report also said internet financing and bitcoin run the risk of illicit activities and despite existing regulation, more could be done.
State Council to offer incentives on privately funded pensions
The State Council said it will provide pilot schemes and offer to defer tax payments to encourage people to fund their own pensions by buying investment products, the Shanghai Securities Daily reported. Insiders said this would speed up development in commercially funded private pensions and benefit the capital market.
PBOC allows overseas rating on interbank bond market
The People’s Bank of China (PBOC) allowed overseas credit rating agencies to rate the country’s interbank bond market on late Monday, a breakthrough step in the US-China 100-day plan, Sina Finance reported. This decision will help speed up capital market access to overseas investors through the bond connect program.
CIRC to crack down on speculation in property insurance
The China Insurance Regulatory Commission (CIRC) issued a guidance on Tuesday listing 11 points for property insurance companies to complete their “self-inspection” by the end of July and carry out reforms by the end of August, Caixin reported. The 11 points include whether the insurance products violate “the principles of insurance,” whether consumers’ rights are upheld and whether unnecessary speculation and sales gimmicks are present.
Shenzhen tightens rules on P2P lending companies
The municipal government’s financial services office in Shenzhen said that all peer to peer (P2P) and internet financing companies in the city are required to have the same operational address as their business registration address, the Securities Times reported. The companies are also required to get a custodian bank within six months.
Jia Yueting and LeEco’s assets are frozen
LeEco, the embattled media conglomerate, issued a statement on Tuesday saying that its founder and main shareholder, Jia Yueting, as well as LeEco’s shares of its main television arm, LeTV, are 99.06% frozen, the Paper reported. In the same statement, LeEco said the freezing of assets will not affect its bid to list the company in future.
Ex-Fujian governor dismissed from party and official role
Su Shulin, the ex-governor of Fujian province, has been expelled from the Communist Party and also sacked from his role as governor, Caixin reported. Su, an ex-Sinopec executive, was alleged to have abused his power and misappropriated large sums of money. He is the fifth high level official from both Sinopec and China National Petroleum Corp. to be investigated on corruption charges since 2013.
Security Times Media Group delisted over revenue requirement
New Third Board listing Security Times Media Group, a 23.06% Security Times share holding affiliate company, was delisted on Monday as it couldn’t provide 2016 annual revenue on time, Caixin reported. The New Third Board is an over-the-counter system for trading shares of public limited companies that are not listed in the Shenzhen and Shanghai exchanges.