Introduction
To make the finance and asset management industry keep abreast of the latest industry developments, Haiwen prepares the "Haiwen Finance and Asset Management Monthly". This monthly reading aims to introduce and provide brief comments on regulatory development and industry news.
For industry news, the CSRC adjusted and optimized the securities lending policies to enhance its role of counter-cyclical adjustment; Hong Kong Chief Executive John Lee announced The Chief Executive's 2023 Policy Address; the NAFR continuously enhancing the “Belt and Road” financial services; the central financial work conference held in Beijing from October 30 to 31.
I Latest Rules and Regulations
1. The CSRC adapted the Guidelines for Publicly Offered Infrastructure Securities Investment Funds (Trial) to expand the asset types for publicly offered REITs pilot programs to include consumer infrastructure
On October 20, 2023, the CSRC issued a decision to amend Article 50 of the Guidelines for Publicly Offered Infrastructure Securities Investment Funds (Trial) (the "Revision"). Based on the Guidelines for Publicly Offered Infrastructure Securities Investment Funds (Trial) (the "REITs guidelines") released by the CSRC on August 6, 2020, the Revision expands the asset types in the publicly offered REITs pilot to consumer infrastructure. This expansion includes a broad range of underlying assets in the REITs guidelines, such as warehousing and logistics, toll roads, airports, ports, and other transportation facilities, municipal facilities like water, electricity, and heating, consumer infrastructure like department stores, shopping centers, and farmers' markets, and other infrastructure aligned with national strategies, development plans, industry policies, and investment regulations, including pollution control, information networks, industrial parks, affordable rental housing, and clean energy.
The Revision broadens the scope of underlying assets for publicly offered REITs, further positioning publicly offered REITs as innovative tools and important vehicles for the high-quality development of the real economy in financial services. Within a week of the Revision's release, the CSRC and the Shanghai and Shenzhen stock exchanges accepted four consumer infrastructure publicly offered REITs projects (China Fortune Land Development Shopping Center, Harvest Wumart Consumer, China Resources Commercial Assets, and CICC SCPG Consumer Infrastructure Public REITs). With the acceptance of the first batch of consumer infrastructure publicly offered REITs, the market size for publicly offered REITs is expected to continue expanding, attracting more domestic and foreign investment.
2. The NAFR Released Notice on Promoting the Standardized Operation and Compliance Management of Financial Leasing Companies
3. The PBOC and NAFR Issued Measures for the Assessment of Systemically Important Insurance Companies
4. The NAFR issued the Implementation Measures for the Administrative Licensing Items concerning Non-Bank Financial Institutions
While continuing to strengthen supervision of the financial industry and improve the quality and efficiency of market access, the Implementation Measures further enhance the opening up of China's financial sector to the outside world. This is conducive to attracting high-quality foreign resources to participate in the disposal of non-performing assets in China, drawing on foreign management experiences, and improving the efficiency of China’s non-performing asset disposal. As of now, Hong Kong New World Development Group has established Hainan Xinchuangjian Asset Management Co., Ltd. in Hainan Province, becoming the first foreign-controlled local asset management company.
II Industry News
1. The CSRC adjusted and optimized the securities lending policies to enhance its role of counter-cyclical adjustment
On October 14, 2023, the CSRC issued a notice to adjust the securities lending policies, aiming to enhance its role of counter-cyclical adjustment. On the same day, the SSE, SZSE and BSE also released implementation notices.
According to these notices, the main adjustments include: (1) On the financing side: The margin ratio for securities lending is increased from no less than 50% to 80%, and for private equity securities investment funds participating in securities lending, the margin ratio is raised to 100%; (2) On the lending side: Shares restricted from transfer, such as listed companies' restricted sales shares, strategic allotment shares, and shares transferred via bulk trading by major shareholders or specific shareholders, cannot be sold by the way of securities financing during the restriction period. The limitations on lending by senior executives and key employees of listed companies through special asset management plans established for strategic allotments have been lifted, and the other strategic investors' lending methods and proportions in the early stages of listing are appropriately restricted, etc.
2. Hong Kong Chief Executive John Lee announced The Chief Executive's 2023 Policy Address
Previous policies in offshore RMB business and Greater Bay Area financial cooperation have already been implemented, including the launch of the “HKD-RMB Dual Counter Model by the HKEX, and decisions by the PBOC and other relevant authorities to optimize the pilot program for the Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area to further facilitate financial market connectivity in the region. The Chief Executive's 2023 Policy Address further signals positive developments in cross-border financial cooperation.
3. The NAFR: continuously enhancing the “Belt and Road” financial services
4. The central financial work conference held in Beijing from October 30 to 31
The central financial work conference was held in Beijing from October 30 to 31. The conference proposed for the first time to build a financial powerhouse and continued the previous positioning of financial work, emphasizing that unswervingly follow the path of financial development with Chinese characteristics, and promote high-quality financial development.
On the one hand, the conference set clearer requirements for finance and financial services to the real economy, covering aspects such as monetary policy, capital markets, bond markets, and the positioning of financial institutions, requiring better utilization of the capital market's hub function, deepening the implementation of the stock issuance registration system, developing diversified equity financing, significantly improving the quality of listed companies, and cultivating top-tier investment banks and investment institutions, and optimizing the capital supply structure, directing more financial resources towards supporting technological innovation, advanced manufacturing, green development, and small and medium-sized enterprises, and developing science and technology finance, green finance, inclusive finance, pension finance, and digital finance. On the other hand, the conference also stressed the need to comprehensively strengthen supervision and effectively prevent and resolve risks (including risks in small and medium-sized financial institutions, local government debts, and the real estate sector, etc.), and called for all financial activities to be regulated by law, with strict enforcement and a severe crackdown on illegal financial activities.
Beijing ICP No. 05019364-1 Beijing Public Network Security 110105011258