21 August 2019
General People's Bank Of China Images


China will continue to enhance the standardization of the financial products in the market, aiming to improve the overall service quality of the nation’s financial institutions, a senior central bank official said on Tuesday.

In a speech delivered at a work meeting of the China Financial Standardization Technical Committee (CFSTC), People’s Bank of China (PBoC) deputy governor Li Dongrong {李東榮} said the CFSTC will help deepen reform in the country’s financial system and implement a change in the government’s functions. The committee will encourage financial innovation while helping standardize the new products in the market, he said.

In 2014, it will launch an incentive scheme to encourage financial institutions to take initiatives on financial standardization while drawing in contributions from more foreign professionals, Li said. Regulators from the securities, insurance and banking sectors also attended the work meeting. 

The CFSTC was set up with 33 members in 1991, according to its official website. The second term started with 56 members in 2002 while the third term kicked off with 48 members in 2012. Its key mission is to standardize the nation’s financial products and services, including credit cards, wealth management products and banking fees. 

Such mission will become increasingly challenging in the coming years as thousands of innovative investment products are being launched on the market in China, as commercial banks seek more service fees to offset slowing growth in interest income, observers say.

Also, as the country may allow the establishment of small private banks, which will focus on serving small and medium-sized enterprises (SMEs), the task of pushing financial standardization will become more complex in the future. 

Big four banks said to have stepped up new loans at start of 2014

China’s big four state-owned banks — Industrial and Commercial Bank of China Ltd. (01398.HK, 601398.CN), Agricultural Bank of China Ltd. (01288.HK, 601288.CN), Bank of China Ltd. (03988.HK, 601988.CN) and China Construction Bank Corp. (00939.HK, 601939.CN) — extended 320 billion yuan (US$52.97 billion) in new loans in the first 12 days of the year, compared with 270 billion yuan a year earlier, the Shanghai Securities News reported Wednesday, citing a source with knowledge of the matter. Some industry insiders believe overall new loan growth will slow toward the end of the month, but the total for January could still top 1 trillion yuan, compared with 1.07 trillion yuan a year earlier. 

CSRC may scan IPO pricing of all listing candidates

The China Securities Regulatory Commission (CSRC) may send teams to examine the initial public offering (IPO) pricing of all the 51 applicants now in the queue, the 21st Century Business Herald reported Wednesday, citing unnamed sources. The move comes after the share flotation of Jiangsu Aosaikang Pharmaceutical Co. Ltd. (300361.CN) was halted due to high pricing. The CSRC previously said that it will conduct selective examination on pricing and marketing process of IPO applicants, the report noted.

–Contact HKEJ at [email protected] 



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