• SAFE eases regulations for special economic zones

    May 24, 2013

    China's State Administration of Foreign Exchange (SAFE) announced that it will ease regulations of foreign currency transactions for firms operating in special economic zones in the country. The simplified regulations now allow companies to take legal profits derived from exports out of the country, as long as they are located in special economic zones. The new rules, which will take effect in June, will also cut down paperwork requirements and reduce the frequency of regulatory checks.
  • Alipay's Yu'e Bao attracts USD86.99bn in deposits

    Apr 21, 2014


    Photographer: Qilai Shen/Bloomberg

    Alipay's online investment unit, Yu'e Bao, had attracted total deposits of about Rmb541.3bn (USD86.99bn) by the end of March, according to Yu’e Bao's fund manager Tianhong. The fund manager has added that investors to Yu’e Bao have enjoyed combined profits of about Rmb7.5bn (USD1.2bn) since its launching in June 2013. In Q1 alone, the wealth management product has registered a profit of Rmb5.7bn (USD915m). Yu'e Bao offers higher interest rates as compared to typical bank deposits.
  • China’s manufacturers: We don’t rely on cheaper yuan for profits

    Apr 21, 2014
    Manufacturers in China have declared that they do not depend on a depreciated yuan in order to gain profits, even though the US government has accused the Chinese government of manipulating exchange rates to expand exports. The Renminbi or yuan fell 2.7% in Q1 versus the US dollar – putting into reverse years of steady gains. Haier Group Senior Executive Sun Shubao has said that the yuan's depreciation does not exactly boost their exports and that of other Chinese companies as most presume.
  • China's middle class set to reach 14 million this year

    Apr 17, 2014


    Photo by Kevin Dooley

    The number of Chinese people bracketed as middle class is expected to rise to 14.01 million by the end of this year from 11.97 million last year, according to Forbes China and Beijing-based wealth management firm CreditEase. The wealth management survey conducted by the two firms has shown that most middle-class Chinese own their own home, with 15.5% of the respondents saying they have more than three properties. The middle class were defined by personal investment capital, which ranged from Rmb600,000 (USD96,480) to Rmb6m (USD964,000). Those funds include cash, stock, funds, bond, insurance and other financing products and property for investment.

  • First Bitcoin ATM launched in China

    Apr 17, 2014

    China's leading digital currency exchanges, BTC China, has announced the installation of the country's first Bitcoin ATM despite stiff regulations against the digital currency. The ATM, which is located in a cafe at a mall in Shanghai's Zhangjiang technology park area, allows people to buy Bitcoin directly in exchange for yuan. Users cannot withdraw cash. Earlier, the central bank has banned financial institutions from trading in Bitcoin, saying the government would act to prevent money laundering risks from the digital currency. It did not ban trading by individuals.

  • China’s latest economic package revealed

    Apr 17, 2014

    The Chinese government has announced its newest financial and tax strategies that include reducing the reserve requirement ratio (RRR) for a number of rural fiscal institutions, in order to make available more backup for countryside  economy and boost the employment. Rural commercial lenders and credit cooperative unions will have their RRR cut down to make the standards while at the same time enhancing bank loans and economic development.
  • Weibo sells 16% fewer shares than projected in US IPO

    Apr 17, 2014
    Weibo Corp of China, a Twitter Inc-style business, was able to come up with USD286m during an initial public offering in New York. It was less than expected due to a lessened offering size. Weibo was valued at the IPO price of around USD3.4bn. The share price was at USD17. The projected range was as high as USD19 but Weibo has sold only 16.8 million shares, far less than the expected 20 million.
  • US Treasury raps China on yuan

    Apr 16, 2014

    The United States Treasury department has criticised the Chinese government for its decision regarding its official currency, saying the fall of the yuan is unprecedented. The US Treasury has also demanded that China reveal its market-intervention actions on a regular basis. According to the US Treasury in its latest currencies report made public on 15 April, the yuan’s weakening means China has gone back on its word to reduce intervention to allow market forces to have a larger role in the economy.
  • Incomes in China kept rising in Q1

    Apr 16, 2014


    Image by Karl Baron

    The average incomes of both urban and rural residents in China kept increasing in Q1 of this year, according to the National Bureau of Statistics (NBS). Average urban resident per-capita disposable income was at Rmb8,155 (USD1,332.52) in Q1. The NBS has explained that the actual growth was at 7.2% yearonyear if inflation is taken out.  The average rural resident per-capita disposable income was at Rmb3,224 (USD500).

  • New bank loans rise in March

    Apr 15, 2014

    Data from the People's Bank of China has shown that new loans made by Chinese banks rose to Rmb1.05tr (USD168bn) in March from Rmb644.5bn (USD103bn) in February.  The loans figure is within the forecasted Rmb1tr made by economists early last month. The report released by China's central bank has also shown that outstanding yuan loans rose 13.9% year on year. Further, the PBOC has said the annual growth in the broad money supply M2 eased to 12.1% from 13.3% in February. Economists had expected a 13% increase.

  • China banks suspend extending home loans

    Apr 15, 2014
    Small and medium-sized banks in 25 out of 35 cities surveyed have reportedly stopped offering home loans due to risk concerns and tense capital flows. According to a news report by the Economic Information Daily, most of the banks that have stopped offering home loans are either small or medium-sized; while the cities reporting the highest number of banks halting lending for housing units included Changsha in south-central China's Hunan province, Wuxi in eastern China's Jiangsu province and Fuzhou in southern Fujian province. Some banks have also adopted harsher scrutiny measures for screening home loan applications while adjusting their interest rates higher for home loans.
  • Czech firm Home Credit eyes China expansion

    Apr 15, 2014
    Home Credit China, a Czech provider of consumer finance, has announced plans to double its business in the country this year in tune with the Chinese government's financial reforms. According to Home Credit China CEO Michal Skocil, its expansion plans has shown that there is a very strong demand for consumer finance in China and that the industry is very well developing in the country. Consumer finance generally refers to short-term loans for personal purchases of durable goods or services such as home decoration, health services and education. Home Credit China now has 12,000 employees and 17,000 retailers in the country.
  • Beijing expected to limit cross-selling fund deal

    Apr 14, 2014

    The Chinese government is expected to set restrictions on the amount of HK-domiciled funds that will be allowed to be sold on the mainland as part of a mutual cross-selling fund agreement, the South China Morning Post has reported. Unnamed sources has also said Beijing will set the limits in order to protect mainland China's domestic funds industry from a flood of overseas competitors. Although the capital has not announced any ratio, it is likely that the ratio could be set as low as 10%, which means a HKD100m-fund in Hong Kong would only be allowed to sell about HKD10m on the mainland.
  • Growth in China’s private equity deals seen

    Apr 11, 2014

    A survey conducted by American global management consulting firm Bain & Co has shown that investors are confident that China's private equity deal value will grow up to 25% this year from last year. About 80%, or 160, of the 200 private equity investors across the Asia Pacific who responded to the survey said the private equity market in China was poised for growth this year due to a foreseen stable economic growth and the condition allowing them to withdraw their funds. Last year, the deal value of private equity investment in the country dropped 30% year on year to USD14bn.

  • ANZ launches Shanghai FTZ branch

    Apr 11, 2014
    The Australia and New Zealand Bank (ANZ) has opened a new branch at the Shanghai free-trade zone (FTZ) on 10 April in time for "Australia Week in China." ANZ follows other foreign lenders opening branches at the FTZ, including Citi, HSBC, DBS and Standard Chartered. According to the FTZ's existing regulations, ANZ’s branch can offer banking products and services such as foreign exchange, trade finance, and commodity finance and cash management.
  • Shanghai-HK stock exchanges connectivity to be created

    Apr 10, 2014


    Image by Foreign and Commonwealth Office

    Premier Li Keqiang has announced that Beijing will initiate moves to make possible the establishment of a connectivity mechanism for the Shanghai and HK stock exchanges. This is meant to produce a viable two-way opening of the capital market in mainland China and the special administrative region of Hong Kong, according to Li during the launching of the 2014 Boao Forum for Asia.

  • Chinese insurers set to make first overseas investment in H1

    Apr 10, 2014

    Following the lifting of restriction that limits Chinese insurers to invest only in the mainland or in Hong Kong, experts have said the country's insurers are expected to make their first overseas stock market investment in H1 of this year. Chinese insurers have around Rmb8.3tr (USD1.3tr) of assets under management at the end of 2013. Li Xiaoxi of Principal Global Equities said Chinese insurers, which are new comers in overseas stock markets, are particularly interested in developed stocks and are set to increase their overseas allocation in the next three years.

  • USD8.06bn worth of six-month deposit up for auction

    Apr 10, 2014

    The Ministry of Finance announced on 10 April that it will auction a total of Rmb50bn (USD8.06bn) of six-month deposits to commercial banks on 15 April. The auction will be conducted by the People's Bank of China on behalf of the finance ministry. In a statement on its website, the ministry has said commercial banks in China will bid for the right to take the deposits. The auction is part of the ministry's cash management programme.

  • Small firms to get tax reduction in China

    Apr 9, 2014
    To boost economic growth and development, Chinese authorities has announced that it will lower tax burdens for small firms, which are key economic players. According to the Ministry of Finance, small firms with an annual taxable income of less than Rmb100,000 (USD16,100) can now enjoy a 50% reduction of their annual taxable incomes and a tax rate of 20%. Currently, the corporate income tax rate for other firms on the Chinese mainland is 25%. The new policy will last from 1 January 2014 to 31 December 2016. The new policy will not only lower their tax burdens, but also help bolster economic growth and boost employment, the ministry said.
  • WH Group plans 21 times share sale in HK IPO

    Apr 9, 2014
    WH Group (Shuanghui International Holdings), the China-based pork producer that acquired US-based Smithfield Foods Inc, announced plans to unload its shares 15 to 20.8 times the value of their forecast earnings for the firm’s multibillion-dollar Hong Kong initial public offering. Sources, however, have said the offering’s price range and fundraising scope have not been decided yet. WH Group is expected to raise some USD6bn from the IPO.
  • Sina to launch online financial product

    Apr 9, 2014
    Despite the government's strict rules on online financial products, online media firm Sina Corp has announced that it will soon be launching its financial service in the middle of the month. The move is part of Sina's plan to tap into the emerging Internet finance sector in the country. The plan is to start a small test run of the new service, allowing 1,900 applicants to buy the wealth management products that will be offered by Sina before midnight of 10 April. The financial service will be officially launched by Sina on 16 April.
  • PBOC hires Deutsche Bank analyst

    Apr 9, 2014

    The People’s Bank of China (PBOC)has hired former Deutsche Bank Chief Economist Ma Jun as its chief economist. This is a a newly-created position at the central bank. The hiring of Ma, who is set to assume office within this month, underlines the PBOC’s plan to bolster its international research capabilities. Based on the internal memo issued by Deutsche Bank, Ma has already accepted the position offered by the PBOC. Ma had worked at Deutsche Bank for 13 years.

  • Chinese firms ‘to dominate’ Asia IPOs

    Apr 9, 2014
    Analysts believe that companies in China will control the initial public offerings in Asia in 2014. An estimated USD10bn is expected to be raised by firms as varied as a car manufacturer, an auto dealer and a pork producer. But investors are wary of the economic slowdown the country is currently experiencing, according to J.P. Morgan Chase’s David Suen. He adds that investors are now more restrained regarding new listings and valuations.
  • US Treasury to China on devaluing of yuan: We’re looking at you

    Apr 8, 2014

    The United States Treasury Department has informed the Chinese government that it is observing intently whether the latter’s efforts to devalue the yuan represent a swing in policy may kick off a new set of competitive devaluations. An unnamed Treasury Department senior official said should China steer away from original plans to let market forces affect the economy more and the yuan's exchange rate.
  • External financial assets hit USD5.9tr

    Apr 7, 2014


    Imaginechina/AP

    The State Administration of Foreign Exchange (SAFE) said China's external financial assets amounted to USD5.9tr at the end of 2013, up from USD5.2tr in 2012. According to the country's FOREX regulator, the net external financial assets amounted to around USD2tr as external liability rose to nearly USD4tr. The country's external financial assets are broken down to foreign exchange reserves at 65% of the total, outbound direct investment at 10%, securities investment at 4% and other investments at 20%.

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