On September 25th, Tencent Cloud’s smart contract security management requirements (智能合约安全管理要求) related proposals were unanimously approved at the International Telecommunication Union ITU-T SG17 meeting. It is the world's first international standard in the field of blockchain smart contract security, filling a gap in this field. The approval marks a milestone for Chinese security technologies in the field of blockchain and will provide Chinese companies with a bigger voice in the setting of international security technology standards.

The PBOC and other government departments issued the “Opinions Concerning Standardization of the Development of Supply Chain Financing and Supporting Stable Circulation and Optimization and Upgrade of Supply Chain Industry Chains” (关于规范发展供应链金融支持供应链产业链稳定循环和优化升级的意见) on September 22nd. The Opinions call for “preventing various forms of risk in relation to supply chain financing.” They target “squeezing out and occupation of the profits of micro, small and medium-sized enterprises by core enterprises and third party supply chain platforms in the name of supply chain financing.”

Recently, the China Banking and Insurance Regulatory Committee (CBIRC) issued the “Notice on Strengthening the Supervision and Management of Microloan Companies” (关于加强小额贷款公司监管管理的通知) to control the risks of the online lending industry. Loans financed by banks and shareholders should not exceed the lender’s net assets, and funds raised via bond sales and asset-backed securities will be capped at four times net assets. In the future, Chinese microloan companies will face further restrictions on using leverage.

Wednesday, 30 September 2020 11:05

Virtual Bank Mox Is Launched in Hong Kong

Standard Chartered Bank announced that it has officially launched its virtual bank Mox in Hong Kong, whose founders include PCCW (电讯盈科), HKT (香港电讯), and Trip.com. Mox provides a suite of retail banking services entirely via its app. In addition to supporting various mobile payment tools, Mox also allows users to access an all-in-one numberless bank card. After ZA Bank, Airstar, WeLab and Livi, Mox becomes the fifth virtual bank to enter the Hong Kong market.

Wednesday, 30 September 2020 11:04

Vanguard to Apply For a Mutual Fund License

Vanguard, one of the world's largest investment companies, recently appointed Luo Dengpan, a former official at the China Securities Regulatory Commission (CSRC), to be the general manager of its soon to be launched mutual fund management firm. Vanguard is preparing to apply for a mutual fund business license in China but has yet to submit its application. Three foreign-funded asset management companies including Blackrock, Neuberger Berman, and Fidelity International, have already submitted their applications, but only Blackrock has so far obtained regulatory approval.

On September 22nd, the Shenzhen Stock Exchange and the Bank of Shanghai signed a strategic cooperation agreement to ease the financing problems for micro, small and medium enterprises. The two parties will focus on promoting in-depth partnerships between commercial banks and capital markets. The next step will see the two parties further deepen their cooperation in the fields of fixed income, product innovation, cross-border services, and asset securitization.

Wednesday, 30 September 2020 11:03

Ant Group Unveils Alipay+ for Global Remittances

On September 24th, Eric Jing, the Chairman of Ant Group, introduced “Alipay+” at the Inclusion Fintech Conference in Shanghai, announcing that Ant had launched the solution this year. Alipay+ connects global merchants and e-wallet users. More specifically, Alipay+ works with various e-wallet providers, such as Alipay and South Korea’s Kakaopay, to help merchants receive payments from customers worldwide. South Korean users, for example, can use Kakaopay to pay an overseas merchant in Korean won who will receive the payment in their own currency in real time.

On September 21st, the Chinese government issued its “China (Beijing) Free Trade Pilot Zone General Plan” for the newly created Beijing Pilot Free Trade Zone (FTZ). Under the plans, the FTZ will support the establishment of a fintech center by the PBOC’s Digital Currency Research Institute; create a statutory digital currency trial zone; create a digital finance system; and form a trade finance blockchain standardization system based on the PBOC’s financial blockchain platform.

On September 25th, Ant Group’s online lender MYBank officially unveiled, at the Inclusion Fintech Conference hosted by Ant in Shanghai, that it was using satellites to monitor farmers' assets in remote rural regions in order to reduce the difficulty of granting loans in these hard-to-reach areas. The technology can measure the size of the farm and which crops are planted on it. The value of a farmer's future harvest is then estimated based on industry prices, climate projections and through the use of risk control models. According to MYBank the service has already assisted over 50,000 farmers in 690 counties despite having just started.

JD Digits announced that it had signed an official strategic cooperation agreement with the PBoC’s Digital Currency Research Institute on September 21st. The two parties intend to jointly promote the research of basic mobile and blockchain technology platforms, based on DCEP (Digital Currency Electronic Payment) projects. Additionally, they plan to build a crypto-yuan wallet ecosystem together. Besides JD Digits, Didi – the Chinese Uber – has also announced its participation in the central bank's project to promote the adoption of digital currency in smart transportation.

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