China

Alibaba, bigtech, China, HKMA, Ping An, Tencent

The Hong Kong Monetary Authority (HKMA) announced it’s granted banking licenses to entities associated with China’s tech giants Alibaba, Tencent as well as insurer Ping An. This gives those entities…

Reuters: China says it wants to eliminate bitcoin mining

April 9, 2019

bitcoin, China, crypto regulation

China’s state planner wants to ban bitcoin mining, according to a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on…

China Daily: PBOC unveils fintech development plan

March 11, 2019

artificial intelligence, China, credit risk, Data, machine learning, PBOC, suptech

China will roll out a fintech development plan and apply the technology more widely to better serve its real economy, said Fan Yifei, deputy governor of the People’s Bank of…

MIT Tech Review: don’t fear China’s AI revolution, copy it

February 24, 2019

artificial intelligence, China, MIT Technology Review

China is now embarking on an unprecedented effort to master artificial intelligence. Its government is planning to pour hundreds of billions of yuan (tens of billions of dollars) into the…

BI: Trump’s AI executive order gets a “show me the money”

February 12, 2019

artificial intelligence, China, Executive Order, Trump

To address concerns of China’s scientific and commercial advance of artificial intelligence and American competitiveness, US president Donald Trump yesterday announced a new executive order for a national strategy called…

Tradeweb platform posts record January at $624.5bn yoy

February 11, 2019

China, credit, derivatives, ETFs, MBS, Repo, Tradeweb, trading platforms

While growth was broad-based across all asset classes traded on the Tradeweb platform, some of the sharpest gains were noted in investment grade and high-yield US credit, mortgage-backed securities, and…

Wharton: AI head at J.P. Morgan talks about bank’s initiatives

February 7, 2019

artificial intelligence, China, insurance, J.P. Morgan

J.P. Morgan hired Apoorv Saxena in August 2018 as its global head of AI and machine-learning services based in San Mateo, Calif, where he also oversees asset and wealth management…

WeBank and Singapore university partner on advanced tech in banking

January 31, 2019

artificial intelligence, China, robo-advisors, Singapore, WeBank

Nanyang Technological University, Singapore (NTU Singapore) and WeBank, China’s first digital-only bank, are setting up a fintech research center to support “Banking 4.0”. While most banking services can be done…

IHS Markit and Chinese fintech team up on bond market price discovery

January 29, 2019

China, Hundsun Technologies, IHS Markit

IHS Markit announced it signed a memorandum of collaboration (MoC) with Hundsun Technologies, a supplier of financial software and network services in China, to explore joint development of bookbuilding solutions…

MIT TR: how China’s AI industry is propped up by its 3 tech giants

January 25, 2019

Alibaba, artificial intelligence, Baidu, China, Tencent

Baidu, Alibaba, and Tencent, the three Chinese tech giants loosely equivalent to Google, Amazon, and Facebook, are not just developing and deploying AI themselves. Their deep pockets have also funded…

Chinese fintech lender picks Baidu-Citic digital custodian

January 10, 2019

Baidu, China, Custodians, electronification, X Financial

X Financial, a digital personal finance company in China, announced that it has engaged Citic AIBank as its custodian bank for its online lending platform, Xiaoying Wealth Management. AIBank’s custodian…

Could Chinese banks become an important liquidity source for Western banks? (Premium)

January 9, 2019

China, Collateral Management, Liquidity Management

Bank of China, China, collateral, ICBC, Liquidity, topstory

In recent conversations on Delta One trading for an upcoming report, we heard the idea that Chinese banks could become an important future liquidity source for Western banks. The logic…

BIS’ Carstens: big tech’s use of ML for credit scoring could disadvantage banks

January 6, 2019

Bank for International Settlements, Big Tech, China, credit, machine learning, People's Bank of China

Excerpts from speech by Agustín Carstens, general manager of the Bank for International Settlements, at the FT Banking Summit, London, 4 December 2018 In contrast to banks, big tech firms…

Bundesbank’s Burkhard Balz: patience is paying off for RMB in international payments

November 28, 2018

Bundesbank, China, RMB

Burkhard Balz: The role of the renminbi in international payments Keynote speech by Mr Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, at the 5th European-Chinese Banking…

China and Japan are holding fewer US Treasuries. What happens next?

November 21, 2018

Asia, China, Fixed Income, Interest rates, US

China, Japan, topstory, US Treasuries

China and Japan together hold 35% of US Treasuries outstanding, according to new US Treasury data. But that figure is decreasing and there are no big buyers stepping up to…

China insurance giant Ping An plans tech R&D investment at $15bn

November 8, 2018

artificial intelligence, blockchain, China, insurance companies, Ping An

Ping An Insurance said it expects to more than double technology R&D investment over the next decade to consolidate its technology leadership in the financial services industry at the Group’s…

AI is essential to fintech existence and use – report

November 8, 2018

artificial intelligence, China, fintech, South Korea

Diplomatic Courier released a special report, published in collaboration with The Future Society, detailing proceedings from the inaugural US-China AI Tech Summit in Silicon Valley earlier this year. Fintech has…

China goes after the IMF, with impacts for global finance

November 8, 2018

China, Regulatory

China, IMF, Regulation, topstory

China wants a bigger seat at the global financial decision-making table. While this drive isn’t new, a quota review at the International Monetary Fund (IMF) is one of those behind-the-scenes…

The Asset: first RMBS transactions on China blockchain

November 6, 2018

ABS, blockchain, BOCOM, China, RMBS, Securitization

China’s securitization market recently saw a landmark deal in which blockchain technology was first utilized in capital markets. China’s asset-backed securities market is Asia’s largest. The residential mortgage-backed securities (RMBS),…

Early AI adopters choose revenue and competition over cost savings

November 6, 2018

Artificial Intelligence, Technology

Allianz, artificial intelligence, BCG, China, ING, MIT

The latest MIT Sloan Management Review just published Artificial intelligence in business gets real, which details the results of the 2018 artificial intelligence global executive study and research project in…

BBH: US/China trade war impact on securities lending

October 28, 2018

BBH, China, Securities Lending

President Donald Trump has slapped tariffs on $250 billion worth of Chinese goods this year, and Beijing has retaliated with levies of $110 billion on American products. The IMF’s projections…

GlobalCapital: China approves tri-party repo

October 21, 2018

China, Repo, tri-party

PBoC has opened the way to triparty repo in the interbank bond market, the central bank announced on October 17. “In recent years, there has been a growing and diverse…

Register: who’s telling the truth in Bloomberg’s China spy-chip report?

October 7, 2018

Amazon, Apple, AWS, Bloomberg, China, cybersecurity, hardware, Super Micro, The Register

Chinese government agents sneaked spy chips into Super Micro servers used by Amazon, Apple, the US government, and about 30 other organizations, which included “a major bank”, giving Beijing’s snoops…

Deep learning in finance is changing geography and systemic risk (Premium)

October 3, 2018

Artificial Intelligence, Technology

artificial intelligence, bigtech, California, Canada, China, London, New York, Stanford University

As the latest rounds get fought between New York and London for the coveted prize of world’s top financial center, some questions are being raised whether new technologies are changing…

SmartStream partners with distributor for China mainland data services

September 12, 2018

China, data management, SmartStream, TGT Chibo

SmartStream Technologies announced the appointment of TGT Chibo Data Service, a technology services and payment solution provider, as an official distributor partner for China’s mainland market. TGT Chibo will initially…

ABI Research: Chinese AI startups beat American peers for VC investment at $5bn in 2017

August 30, 2018

artificial intelligence, China, fundraising

Chinese AI startups raised $5 billion in venture capital funding in 2017 and overtook their US counterparts, found ABI research, an advisory firm. The overall investment values for AI startups…

China in surprise crypto ban after spending billions on promotion

August 23, 2018

China, cryptocurrencies

China has issued a ban on hosting any token-related promotions in offices or hotels, according to various media reports, some of which referenced a Tweet from Red Li, co-founder of…

China’s Ant Financial raises $14 billion from slew of domestic and foreign investors

June 11, 2018

Ant Financial, China

Ant Small and Micro Financial Services Group announced it has entered into definitive agreements with investors for its Series C equity financing for some $14 billion. The financing round includes…

Reuters: Ant Financial shifts focus from finance to tech services

June 9, 2018

Ant Financial, China

Ant Financial Services Group, the dominant Chinese fintech company, is shifting its main focus to technology services and away from payments and consumer finance as Beijing’s crackdown on financial risk…

CBRC will ease caps on foreign ownership of Chinese FIs

February 26, 2018

CBRC, China

China’s banking regulator will ease caps on foreign ownership in financial asset management companies and Chinese banks (excluding private banks) and apply non-discriminatory ownership limit rules. China Banking Regulatory Commission…

ISDA updates on China’s new rules for derivatives counterparty risk

January 18, 2018

CBRC, China, derivatives rules

On January 16, the China Banking Regulatory Commission (CBRC) issued a notice on measuring derivatives counterparty default risk. The notice will come into effect on January 1, 2019 for commercial…

GC: China’s central bank provides relief for squeezed European repo market

October 5, 2017

China, European repo market, PBOC, Repo

The People’s Bank of China has used its extensive holdings of European government bonds to act as an “escape valve” at times when the European repo market has become squeezed,…

USTR announces initiation of Section 301 investigation of China

August 21, 2017

Richard Stinchfield

China, USTR

Washington, DC – Today, U.S Trade Representative Robert Lighthizer formally initiated an investigation of China under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether…

Basel Committee report card on LCR in China, EU, and US

July 5, 2017

Basel Committee, China, EU, LCR, US

Today the Basel Committee on Banking Supervision published reports assessing the implementation of the Liquidity Coverage Ratio (LCR) in China, the European Union and the United States. Overall, the LCR…

South China Morning Post: China’s regulator fines brokers for illegally providing margin financing services

May 26, 2017

China, Margin financing

China’s regulator has penalised three of the country’s largest brokers, blaming them for their role in the 2015 stock market crash, in the first official account of a rout that…

ASIFMA report advocates for improved short selling rules in China

March 30, 2017

ASIFMA, China, Short selling

China’s Capital Markets Navigating the Road Ahead March 2017 Rules against naked short selling are used globally and are defensible. However, the common prejudice against covered short selling is as…

Reuters: China regulates fund outsourcing business in fresh move to curb shadow banking: Sec Times

March 22, 2017

China, Reuters, Securities Times, Shadow Banking

China’s securities regulator has introduced new restrictions for financial institutions seeking to outsource fund management to external fund managers, the official Securities Times reported on Monday, as the government tightens…

Asia Times: China summons reformer to tackle banking woes

February 28, 2017

Guo Shuqing, who is stepping down as governor of Shandong province to take control of China’s banking regulator, returns to Beijing at a decisive moment for the country’s financial system…

Reuters: CME Group sees Chinese hedge funds, state-owned firms driving Asia growth

February 23, 2017

China, CME, hedge funds

Feb 21 China’s 2015 market crash sparked a surge in Asian trading for futures exchange giant CME Group as Chinese funds hedged their risk offshore and growth prospects remain strong,…

WSJ explains Chinese “dai chi” bonds, a repo variation

January 19, 2017

China, dai chi, Repo, WSJ

Behind China’s Bond Selloff, a Risky Twist on the Repo Trade Trading practice called ‘dai chi’ sprouted up in China’s long credit boom—and has helped exacerbate the bond-market rout The…

San Francisco Fed: The Changing Face of Shadow Banking in China

January 12, 2017

Asia, China, SF Fed, Shadow Banking

The growth of China’s nonbank financial institutions, which engage heavily in shadow banking, has been extraordinary over the past decade. During this period, China’s shadow banking system not only engaged…

What is China’s X-Repo market and why does it matter? (Premium)

January 4, 2017

China, Repo

China, People's Bank of China, topstory, X-repo

China has several repo markets – among them the interbank pledged repo, an outright repo market and the X-repo market. Lately, the X-repo market has been showing up more prominently.…

Reuters: China limits OTC business for financing

November 7, 2016

China, Swaps

The China Securities Regulatory Commission (CSRC) has banned the use of over-the-counter (OTC) derivatives as a financing channel, in a fresh move to restrict risky shadow banking businesses, according to…

Moody's: China's shadow banking activity expands briskly; credit growth outpaces nominal GDP

November 1, 2016

China, Moody's, Shadow Banking

Hong Kong, October 27, 2016 — Moody’s Investors Service says that overall shadow banking activity in China (Aa3 negative) expanded briskly during H1 2016. “We estimate that China’s shadow banking…

SF Fed: The Growing Importance of China’s Money Market

September 19, 2016

China, Money Markets, SF Fed

China’s money market is growing rapidly and playing an increasingly important role in the financial system. It serves as both a key channel for monetary policy and as a source…

Bloomberg: China to Boost Lending for Brokerages' Stock Margin Trading

March 22, 2016

China will boost lending to brokerages for their margin trading business after the nation’s stock market slumped and leverage more than halved from last year’s peak. China Securities Finance Corp.,…

MNI: China Brings Back 28-Day Reverse Repos to Help Liquidity

January 19, 2016

China, Liquidity, Repo

BEIJING (MNI) – The People’s Bank of China injected CNY75 billion via 28-day reverse repos at open-market operations Tuesday – the first use of the maturity in a year. Its…

Rate games adding to the complexity in collateralized funding markets (Premium)

January 13, 2016

Richard Stinchfield

China, ECB, Federal Reserve, Interest rates, Repo, Short Term Interest Rate Benchmarks, Systemic Risk

China, Euro, fed rate hike, Fed Repo Facility, monetary policy, topstory