Financial Services Talking Points | 13/02/2018

 

In today’s talking points: Global markets bounce back; New offshore regulations issued; China increases focus on internet finance regulation; J.D to open office in Australia.

 

Global markets bounce back after horror week

Global markets are continuing to recover following the worst week on the stock market in nearly two years. Both the Dow Jones and Nasdaq made gains on Monday, while the S&P 500 index was buoyed following the unveiling of the new US budget by President Donald Trump. European markets followed Wall Street’s lead, with one percent gains in the UK, Germany and France, particularly thanks to rising crude oil prices. Investors hold a positive outlook for the ASX, though the effect of the recently commenced royal commission into the banking sector appears to be weighing on the market as a whole.
Read more at: ABC

  

China focuses on internet finance

 The Chinese National Internet Finance Association has announced plans to increase regulations surrounding the country’s ever-growing internet finance industry. The plans are said to focus on routine, with self-discipline within the industry key to future success. The NIFA states that research and training is essential to future development within the industry, particularly risk identification and market security.  The announcement follows previous attempts to mitigate risk in the industry last year, with China ordering the shutdown of all virtual currency exchanges within the country. The NIFA has already partnered with online credit firms to begin providing personal credit information to these online lenders, supplementing state-run services.
Read more at: Xinhua

 

 China issues new offshore finance regulations on insurance companies 

 As part of an ongoing scheme to curb risky overseas investments by insurers, China’s top insurance and regulatory body have enacted new laws to prevent overborrowing by Chinese insurance companies overseas. The China Insurance Regulatory Commission and the State Administration of Foreign exchange conveyed Monday, that offshore financing that is leveraged through domestic assets, must be capped at 20 per cent of net assets as of the previous quarter. A previous notice, issued 5 of January, provided that insurers must also report any overseas financing backed by domestic assets worth $50m USD or more to the commission for assessment before proceeding further. Such notices reflect tighter scrutiny on insurers to guide ‘more structured and rational overseas investments’ says General manager of Pacific Life Re Greater China, Wesley Cui.
Read more at: SCMP

 

JD.com opening local business office in Australia

JD.com, China’s largest retailer by revenue, is opening its Australia/New Zealand regional headquarters in Melbourne. Chairman Richard Liu says that JD.com’s customers ‘are demanding more and more high quality products from Australia and New Zealand’ with setting up an office in Australia a major step toward meeting that demand. Australian products in strong demand in the region include food, dairy and cosmetics. JD.com says it is open to brands, franchisees, retailers and traders looking to reach customers in China.
Read more at: Yahoo! Finance