According to the new guidelines, the commercial banks will be evaluated using four different comprehensive benchmarks. The updated benchmarks are as follows:

1.     Serving national development goals and the real economy;

2.    Achieving high-quality development;

3.    Controlling and preventing risks; and

4.    Improving operational efficiency.

The new standards replace the previous measures of profitability, business growth, asset quality and solvency. Each category will contribute 25% to the overall performance evaluation.

On 3rd December 2020, the PBOC officially released the "Technical Specifications for Intelligent Prevention and Control of Payment Risks Based on Big Data". The Payment Risk Specification stipulates the technical framework and system implementation security required to control and prevent payment risks based on big data, artificial intelligence and other technologies. It is applicable to payment-related commercial banks, non-bank payment institutions, and clearing institutions to carry out payment risks assessments.

Tuesday, 12 January 2021 03:40

Mashang Consumer Finance to go Public

According to the Chongqing Supervision Bureau of the China Securities Regulatory Commission, Mashang Consumer Finance (马上消费金融) has signed a counseling agreement with a sponsor and plans to go public. The company went through the counseling record registration with the Chongqing Securities Regulatory Bureau on January 6th, 2021. It would be the first consumer finance company to be listed on the A-share market.

According to the National Development and Reform Commission (NDRC), as of the end of December 2020, the National Integrated Credit Service Platform for Small and Medium-sized Enterprise Financing (also known as the "National Xinyidai Platform") had integrated with 178 local platforms or sites and helped issue a total of RMB1.01 trillion (US$154 billion) in credit loans.

The platform is a comprehensive national credit information sharing platform for financing established by the NDRC and the China Banking and Insurance Regulatory Commission. It serves to integrate administrative licensing, administrative penalties, taxation, social security, provident funds, utilities, warehousing and logistics, and public resource transactions.

A physical card-wallet pilot program has been launched in a canteen at Shanghai Jiao Tong University School of Medicine’s Tongren Hospital. Staff at the hospital can use the card-wallet to make purchases at the many shops in the hospital. The card shows spending, balance, and the remaining number of offline payments available via a small screen at the top-right corner of the card. In the future, DCEP will be tested in various scenarios such as for hospital diagnosis and treatment payments, physical examinations fees and parking fees.

Tuesday, 12 January 2021 03:39

Bilibili Pay Is on the Way

Bilibili (NASDAQ: BILI), also nicknamed B Site, is a video sharing website based in Shanghai with over 180 million registered users, mostly consisting of the younger generation in China.

Bilibili appears to be preparing to enter the payment business in China, with Shanghai Huandian Information Technology Co., Ltd., an affiliate of B Site, completing the filing of domain names such as "bilibilipay.com" and "bilibilipay.cn". Additionally, recruitment websites indicate that B Site has been filling payment business-related job positions since November last year.

The Monetary Authority of Macau is launching a new product called ‘聚易用Simple Pay’, an integrated mobile payment tool for merchants. Using the product, merchants will be able to use a single terminal to accept all local QR code payment tools, giving customers the choice of using any local QR code payment tool for purchases. Tourists can continue to use overseas wallets to pay with the new tool too.

On 31st December 2020, Tenpay, the operator of Wechat Pay, received a fine of RMB8.8 million (US$1.4 million). According to the PBOC, the violations include failing to ensure the consistency of transaction information in the entire payment process and providing payment services for illegal and false transactions, among others.

Tenpay has been fined three times in the past two years, with fines totaling RMB10.66 million (US$1.6 million).

Pengyuan Credit (鹏元征信), one of the 8 company shareholders of Baihang Credit, the first and only credit agency in operation in China with an individual credit license, recently received a record fine of RMB19.8 million (US$3.1 million). The report states that Pengyuan’s violations include conducting personal credit checks without a license and failing to file a notice on the appointment of new senior management in time. This is the first fine from the PBOC on such an issue.

On December 29th, the China Banking and Insurance Regulatory Commission (CBIRC) issued a risk reminder on the dangers of online platforms that allow users to borrow excessively. CBIRC stated that some online platforms promote various misleading conditions to over-market financial products such as loans or credit card overdrafts to induce excessive amounts of borrowing. In response, the Consumer Rights Protection Bureau of the CBIRC issued the sixth risk warning for 2020 to remind consumers to establish a rational borrowing attitude.

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