CX Daily: China Intensifies Efforts to Curb Risk in Troubled Trust Sector
TOP STORIES
Trust?/
Profitability is out and risk management is in. That’s the message in the latest set of regulations for China’s trust companies aimed at controlling a 22.6 trillion yuan ($3.1 trillion) industry that continues to be beset by scandals after a years-long overhaul .
The rules, which replace regulations introduced in 2016, went into effect in November and put greater emphasis on risk prevention, encouraging trust firms to focus on providing wealth management services rather than acting as financing channels, experts and industry sources said. They also aim to limit the development of problematic trust firms by implementing differentiated supervision. ?
Personnel?/
China’s former foreign minister Qin Gang’s membership of the country’s top legislature has been terminated, authorities announced Tuesday, in the latest development following his dismissal last July.
The Tianjin Municipal People’s Congress Standing Committee accepted Qin’s resignation from the National People’s Congress (NPC), the state-owned Xinhua News Agency reported, quoting an official notice issued by the national legislative body.
FINANCE & ECONOMY
Ant Group?/
Chinese fintech giant Ant Group Co. Ltd. has outbid Citadel Securities LLC for Credit Suisse’s investment bank venture in China, in a surprise move that could add regulatory uncertainty to the deal.
Citadel Securities made a non-binding offer in late December to pay $1.5 billion yuan to 2 billion yuan ($210 million to $280 million) for Credit Suisse Securities (China) Ltd. ?
CIC?/
China’s sovereign wealth fund China Investment Corp. (CIC) has appointed Liu Haoling as vice chairman, general manager and chief investment officer to replace retiring Ju Weimin.
Liu, 52, previously CIC’s executive vice president, was named as the fund’s new deputy Communist Party committee chief last month. ?
Quick hits?/
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BUSINESS & TECH
Lithium?/
China’s lithium carbonate miners have been cutting production , as prices of the key electric vehicle (EV) battery material continue to drop amid weaker demand.
Factory operating rates dropped to 45.73% on Friday from 52.5% on Feb. 9, the day before the Lunar New Year holidays began, according to data from Shandong Longzhong Information Technology Co. Ltd. ?
Laundering?/
Shanghai prosecutors have charged four livestreaming hosts for money laundering in the country’s first such case, highlighting a new method whereby criminals use the tipping mechanism on the popular internet platform to transfer illicit funds.
Three of the four people have pleaded guilty and accepted their punishment, with one returning the illicit funds in full and the other two returning most of them, according to an article published last week by the Shanghai Pudong People’s Procuratorate. ?
Quick hits?/
Daily Tech Roundup?/
Long Read?/
GALLERY
China’s northern neighbor has been hit by severe cold and blizzards in the past week that have given swathes of its vast grasslands the look of arctic tundra. Huge snowdrifts buried yurts, a traditional type of tent home used in Mongolia, leaving herders short of food and fuel, and some in need of medical help. The extreme weather has also killed more than 2 million livestock.