China’s Financial Regulators Pledge Tighter Control Of Economy, Closure Of “Loopholes”
Over the past week, China has restricted minors to only three hours of video games a week, while erasing one of the country’s most popular actresses to kick off its reformation of China’s entertainment industry, which include reining in obsessive online ‘fandoms’ while asking that, from here on out, men in Chinese media avoid looking too “effeminate” while also avoiding even a hint of political controversy.
Now that the weekend has arrived, the focus is shifting back to the economy, as China’s economy. Chen Yulu, deputy governor of the People’s Bank of China, said at the China International Finance Annual Forum in Beijing Saturday that the PBOC will close loopholes in its financial technology regulation, and include all types of financial institutions, services and products into its prudential supervision framework, Bloomberg reports.
“We will enhance the effectiveness and professionalism of financial regulation, build all kinds of firewalls to resolutely prevent systemic risks,” Chen said.
Meanwhile, the China Securities Regulatory Commission will tighten restrictions on companies seeking overseas listings, while enhancing the channel for foreign investors to participate in China’s onshore futures market, Vice Chairman Fang Xinghai said at the same forum.
Back in July, Chinese regulators proposed rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review.
At the same time, Chinese officials expressed a wariness of western capital markets, implying that the central bank’s flood of capital injected into the economy since the start of the pandemic has undermined the strength of the dollar-based financial system. Perhaps this is why China is hedging its bets. While it continues to court international investment in certain markets, China’s banking regulators will focus on protecting the Chinese economy against any risks transmitted via “malicious” cross-border investment flows.
Chinese assets are extremely unpopular right now, so there must be opportunity for an investor with the right risk tolerance. Maybe Beijing could find some foreign dupes who might be willing to inject more capital in Evergrande?
Sat, 09/04/2021 – 22:00
Source: Zero Hedge News
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