China

China, CSOP Asset Management, HSBC, ICBC, SGX

ICBC CSOP FTSE Chinese Government Bond Index ETF will start trading on 21 September CSOP Asset Management’s inaugural ETF on SGX will kick off with US$676 million (RMB 4.6 billion)…

Doors open for international access to China’s huge securities finance markets

September 3, 2020

China, Custodians, Repo, Securities Lending

Blackrock, China, Citi, Custody, JP Morgan Asset Management, Repo, Securities Lending, topstory

China’s securities markets are enormous, at over US$23 trillion in bonds and equities, and so is its repo and securities finance business. New rules allowing international firms to apply for…

People’s Bank of China promotes repo as benchmark interest rate

August 31, 2020

benchmark rates, China, People's Bank of China, Repo

The People’s Bank of China Publishes the White Paper Participating in International Benchmark Interest Rate Reform and Improving China’s Benchmark Interest Rate System Although China started late, compared internationally, in…

SupChina: China blockchain policy leads ROW

August 18, 2020

blockchain, China

No other country has laid out, funded, and executed as comprehensive a blockchain policy as China, writes Abhas Jha, who works on technology, cities, resilience, and public policy at the…

Research paper: China central bank collateral policy reduced spreads in acceptable bonds by 42-62 bps

July 13, 2020

Central Banks, China, collateral, monetary policy

The Collateral Channel of Monetary Policy: Evidence from China Hanming Fang, University of Pennsylvania – Department of Economics; National Bureau of Economic Research (NBER) Yongqin Wang, Fudan University Xian Wu,…

CrossBorder Capital: China’s support for US dollar can no longer be relied upon

July 8, 2020

China, CrossBorder Capital, dollar

When things cannot go on forever, they stop. And so it is with China’s support of the US dollar. Foreigners sold more than $500bn of US government bonds during the second quarter, and…

Bloomberg: China’s quants are “latecomers” to tech and algos, but have home advantage

June 1, 2020

China, hedge funds, quants

China’s quants are benefiting from being “latecomers,” borrowing technologies and algorithm models from abroad, according to UBS Asset Management Hedge Fund Solutions. While they may lack years of trading experience…

Deutsche Börse enters partnership with Chinese data provider Wind

May 28, 2020

China, Deutsche Boerse, Eurex, market data, Wind

Deutsche Börse and Wind, a financial data provider in China, have teamed up on European markets access, which is expected to be easier for China’s institutional investors based on market…

Starts and stops for Chinese bonds as global collateral (Premium)

May 26, 2020

China, Collateral Management

CCDC, China, Clearstream, Corporate Bonds, DTCC, Equities, Euroclear, topstory

A long-held goal of the Chinese government is for Chinese bonds to be eligible as collateral in transactions anywhere around the world. Although institutions are taking important steps forward on…

Media reports: ICBC releases blockchain whitepaper, spotlights China’s CBDC

April 22, 2020

blockchain, CBDC, China, ICBC, institutional crypto

The Industrial and Commercial Bank of China (ICBC), the world’s largest lender by assets, has released a white paper on blockchain technology applications in finance, titled, “Blockchain Financial Application Development White…

Caixin: China securities lending at record high

April 13, 2020

Caixin, China, Securities Lending

Chinese short sellers have been increasingly active over the last few months amid grim market conditions, pushing the balance of securities lending on domestic exchanges to a record high of…

Global force majeure creep into the collateral world (Premium)

March 3, 2020

Collateral Management, Derivatives, Repo

China, collateral management, coronavirus, Force majeure, Repo, topstory

China’s Council for the Promotion of International Trade (CCPIT) has issued a record number of force majeure certificates, now at 1,615, covering $15.7 billion in transactions. An expansion of the…

FT: patents reveal extent of China’s digital currency plans

February 13, 2020

CBDC, China

The People’s Bank of China has filed more than 80 patents related to its secretive plans to launch a digital currency, according to new research that shows the extent of…

Reuters: Japan lawmakers push government for G7 talks on digital yen

February 7, 2020

China, digital currency, Japan

Japan should prepare to issue digital currencies and propose bringing up the topic at this year’s G7 meetings to counter China’s move toward issuing a digital yuan, a group of…

SCMP: China to inject US$174 billion of liquidity into markets amid new coronavirus outbreak

February 3, 2020

China, Liquidity, reverse repo, South China Morning Post

China’s central bank has announced it will inject 1.2 trillion yuan (US$174 billion) into markets via reverse repo operations on Monday Investors are bracing for the worst when markets resume…

Central banks consider new growth tools amid coronavirus worries

January 28, 2020

China, ECB, Federal Reserve, Interest rates, Regulatory

China, coronavirus, ECB, Federal Reserve, monetary policy, topstory

The Fed may be looking at the end of its already broadened toolkit for boosting growth. The ECB is considering all of its policy options while expressing frustration with politicians.…

China’s digital currency project: why you should pay attention now (Premium)

November 26, 2019

China, Cryptocurrency, US

China, digital yuan, reserve currency, topstory, US dollar

Psst – look over here! While the financing and collateral worlds are waiting for year end market disruptions in the short-term, the biggest story on the medium-term horizon is China’s…

Finadium: Local Currency Repo in Asia: Collateral Growth and the Path to Mass Adoption

November 18, 2019

Asia, China, Repo

Asia, China, Japan, Repo, topstory

Finadium has conducted an investigation into local currency repo in Asia. This report offers market sizing, a review of specific country and pan-Asian repo trends, and data on how impactful…

Is there offshore demand for Chinese bonds as collateral? (Premium)

November 14, 2019

China, Collateral Management, Fixed Income

Bonds, China, collateral, offshore, onshore, topstory

At ¥95.5 trillion (US$13.7 trillion), the Chinese bond market is big and growing. Chinese institutions would like to see Chinese bonds accepted as collateral offshore. The effort faces obstacles however.…

Institutional crypto weekly roundup

October 30, 2019

Bakkt, bitcoin futures, blockchain, Canada, CBDC, China, crypto regulation, IBM, ICO, OMFIF, Ontario Securities Commission, retail, Thailand, TokenGX

Our weekly list of announcements about how capital markets participants and regulators are engaging with digital assets. Credit Suisse, SocGen to use Paxos blockchain settlement for US equities Paxos Trust…

HKEX picks TNS for connectivity, managed hosting and market data access

October 15, 2019

China, exchanges, HKEX, TNS

Transaction Network Services (TNS) and Hong Kong Exchanges and Clearing (HKEX) have signed an agreement for connectivity, managed hosting and market data access that will give financial market participants greater…

HSBC facilitates first T+3 trade in China Interbank Bond Market

August 29, 2019

China, HSBC

HSBC announces that it has successfully facilitated the first T+3 trade in the China Interbank Bond Market (CIBM), right after the official announcement to extend bond settlement cycle for overseas…

Capital markets blockchain weekly roundup

July 22, 2019

Bakkt, Binance, bitcoin futures, CBDC, China, crypto custody, crypto exchanges, crypto fund, FINRA, ICE, institutional crypto, PBOC, regulatory reporting

Our weekly list of announcements about how capital markets and regulators are engaging with digital assets. FINRA issues notice for digital asset reporting FINRA reminded members to keep the regulator…

Perspectives and approaches in AI ethics: East Asia

June 25, 2019

AI ethics, Asia, China, Japan, South Korea

This chapter introduces readers to distinct Chinese, Japanese, and South Korean perspectives on and approaches to AI and robots as tools and partners in the AI ethics debate. Little discussed…

Reuters: China improves short-selling mechanism ahead of tech board launch

June 23, 2019

China, Reuters, Short selling

China’s securities regulator on Friday published guidelines on mutual funds participating in the securities lending business, as part of efforts to improve China’s short-selling mechanism. Under the business, mutual funds…

PanAgora: machine learning’s promise and pitfalls

June 18, 2019

Artificial Intelligence, Technology

AI ethics, CAIA, China, machine learning, natural language processing, Panagora

When CAIA (Chartered Alternative Investment Analyst Association) conducted a survey on the use of machine learning in the investment process, the vast majority of respondents proved to be in “raising…

SCMP: China launches its own Nasdaq

June 17, 2019

China

Beijing has officially launched its new technology innovation board, which is being dubbed China’s Nasdaq-style market. Huang Hongyuan, chairman of the Shanghai Stock Exchange, told the Lujiazui Forum in Shanghai…

MIT TR: Beijing’s AI ethics move signals openness to dialogue

June 7, 2019

AI ethics, China, MIT Technology Review

This week, Chinese scientists and engineers released a code of ethics for artificial intelligence that might signal a willingness from Beijing to rethink how it uses the technology. And while…

SCMP: Ping An plans to be advanced tech provider for Hong Kong banks

June 5, 2019

artificial intelligence, bigtech, blockchain, China, Hong Kong, NLP, Ping An

Ping An OneConnect, a virtual bank licence holder and the fintech arm of Ping An Insurance, is developing a range of technology that can help manage fraud and loan default…

Fintech weekly deals and partnerships round-up

WeBank and SwissRe team up for insurance AI WeBank and SwissRe announced an MoU signing towards cooperation focusin on Federated Learning, one of the latest developments in the world of…

China tech giant units get license from Hong Kong central bank

May 11, 2019

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