September 7 – China will allow unfettered exchange of its currency in the proposed Shanghai free trade zone, the South China Morning Post reported, citing a draft plan. Local authorities in Shanghai said the free trade zone will allow foreign banks to set up wholly owned units, with simplified procedures, and bolder moves could be anticipated in the zone for opening up China's financial market.
August 30 – China will step up monitoring local government debts and mapping out policies to control potential risks, said finance minister Lou Jiwei. Lou said new government debts must be brought under control and severe penalties will be imposed on local governments engaged in illicit fundraising.
August 23 – China's 39 life insurers posted a combined 21.1 billion yuan in premium incomes from bancassurance business in the first 7 months of 2013, down 23% from a year earlier, according to the China Insurance Regulatory Commission. Specifically, half of them reported a decrease in bancassurance premium incomes.
August 21 – China is preparing to free up deposit interest rates as part of the effort to liberalize the financial market, central bank governor Zhou Xiaochuan said in an interview, without commenting on the much-anticipated removal of deposit interest rate floor. The People's Bank of China will keep in place prudent monetary policy in 2H 2013, with possible minor adjustments, according to Zhou. Zhou said he was personally optimistic about deregulating deposit interest rates.
August 19 – China is well prepared to free up deposit interest rates as part of the effort to liberalize the financial market, central bank governor Zhou Xiaochuan said in an interview, without commenting on the much-anticipated removal of deposit interest rate floor. The People's Bank of China will keep in place prudent monetary policy in 2H 2013, with possible minor adjustments, according to Zhou.
August 14 – Revenue from IT solutions China's banking industry totaled 12.17 billion yuan in 2012, up 20.7% from the year before, said International Data Corp. The market is projected to grow 20% annually in the next 5 years to 32.44 billion yuan by 2017.
August 14 – Foreign banks were not doing well in China, with six of them posting losses in 1H 2013, said a person from a foreign bank in Shanghai, who declined to name the unprofitable banks. Despite this many foreign banks had said in their interim reports that they would ramp up investment in China in 2H 2013, such as opening more branches and sub-branches.
August 14 – Chinese banks posted 753.1 billion yuan in profits in 1H 2013, up 14% from the same period of the year before, the China Banking Regulatory Commission said. The growth rate was slower than the 23.3% in 1H 2012 and the 18.9% in full year 2012 as banks stepped up deleveraging and the government introduced measures to increase competition in the banking sector.
August 13 – China's central government released a bankcard report that shows there were 3.83 billion bankcards in circulation in China as at the end of June 2013, up 18.9% from a year earlier. This included 3.47 billion debit cards and 364 million credit cards, up 18.7% and 20.3% respectively from a year earlier.
August 12 – China lowered the threshold for the establishment of Chinese-funded banks. The China Banking Regulatory Commission removed the required capital adequacy ratio and the upper limit of equity investment balance when a Chinese financial institution establishes a commercial bank as a sponsor, and local governments are now allowed to invest in the bank or intervene in its operations. Experts say the move may result in widespread establishment of small and midsized lender that will serve small and midsized businesses.
August 12 – 116 banks in China offered 3,301 wealth management products in July, down 0.84% from the month before, according to CNBENEFIT data.
August 9 – China's Renminbi-denominated loans totaled 699.9 billion yuan in July, an increase of 159.8 billion yuan from a year earlier, according to central bank figures. Renminbi-denominated deposits decreased by 257.3 billion; the decline was 243.3 billion yuan less than a year earlier. Between January and July, Renminbi-denominated loans totaled 5.78 trillion yuan, an increase of 383.9 billion yuan from a year earlier; Renminbi-denominated deposits rose by 8.83 trillion yuan, an increase of 1.96 trillion yuan from a year earlier.
August 2 – China is working on policies to back the establishment of private financial institutions and to further open up the financial market, a person with knowledge of the issue said. Private capital is being prepared in Wenzhou, Zhejiang to establish the first privately-owned bank in China, according to the source. Wenzhou is best known for its dynamic shadow or underground banking market.
July 31 – Outstanding loans owed by local government financing vehicles (LGFV) amounted to 9.7 trillion yuan as of the end of June 2013, up 6.2% from a year earlier, according to the China Banking Regulatory Commission. Local governments established financing vehicles, which are like government-company hybrids, to get around strict borrowing restrictions and secure loans from unfettered lending after the central government announced the 4 trillion yuan stimulus package in late 2008 to maintain growth against the global financial crisis. The mounting LGFV debt poses a potential threat to China's financial stability.
July 31 – The China Banking Regulatory Commission also said the balance of wealth management products (WMP) was 9.08 trillion yuan as of the end of June 2013, down 7% from the amount as of March 27, when the commission ordered tougher regulations on WMPs, which are short-term investments disguised as deposits with higher yield than regular deposit rates.
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