UBS AG Managing Director and Head of Risk Management in Product Sales, Li Huimin, says that the China Banking Regulatory Commission intends to invite various foreign financial institutions with extensive experience in developing and designing financial commodities to provide technical training in structural products research and development to Chinese banks.  This marks the latest in a series of moves by the Chinese banking sector to raise capabilities and competitiveness in the wealth management market.

On November 15, China’s central bank increased the deposit reserve rate by 0.5% to 9%, which was the third increase in 2006. How does this new policy affect China’s overall investment climate? Financial analysts generally agree that this will become a regular tool for the central bank to tighten control over excess financial liquidity.

Following aggressive moves of HSBC Group and Citigroup Inc., Standard Chartered Group announced business expansion plans by selectively acquiring strategic stakes from Chinese Mainland banks and registered subsidiaries in the country.

Several small and mid-size broadband service providers such as Great Wall Broadband, Peking Founder and Bluewave Broadband Networks all believe that the cooperation between mid-size broadband services providers to optimize industry resources, reduce cost and provide better services. Does this mean that mid- and small-sized broadband firms will enjoy a stronger position in China’s broadband market?

Aerospace conglomerates that have control over many listed firms, such as China Aerospace Science & Industry Corporation (CASIC) and China Aerospace Science & Technology Corporation (CASC), have announced plans to turn to the capital market and realize a full stock listing. Independent research and development as well as a listing in the financial market would lead to greater diversification and gain expanding channels of finance.

Facing experienced and mature foreign accounting organizations, local accounting firms move to reorganize internal structure and to improve their personnel quality to compete. Three major Chinese firms, Shanghai Shulun Pan Certified Public Accountants Limited, Zhongtianhuazheng Group and Guangzhou Yangzheng Certified Public Accountants Co. Limited, are to merge by this week to form Shanghai Shulun Pan Certified Public Accountants Group (PCPA). The new venture gears up to compete with the big 4 foreign accounting firms and is expected to have 2000 employees and 500 million yuan (62.5 million US dollars) total annual operating income.  

High savings rate and domestic consumption have been the issue troubling the government and economists. One of the reasons for golden week holidays is to boost domestic consumption which would in turn direct national economy to a healthy direction. While traditional home economics and budgeting encourage low consumption, economic transformation has increased expenditure and reduced impulsive consumer behavior. Professor He Ping, an experienced researcher in the area with the school of finance of China Renmin University, detailed the reasons and what should be done.

With the planned listing of International Construction Bank of China (ICBC) in Shanghai and Hong Kong in two weeks, the passion for the bank’s IPO unveils heightened interest of global investors in the opening up of China’s capital market.