China financial regulation

2 years after its IPO was scuttled, Ant Group is finally being allowed to increase its capital – with several caveats.

China relies on implicit regulations to encourage innovation while containing its potential risks. Firms doing business in China must embrace the nature of its regulatory culture.

While Beijing has studied the mistakes of past financial cleanups, its current approach risks making new ones.

WMPs have become a regular part of China’s financial system, but the systemic risks remain.

China’s bond market appears hampered by unpredictable default mechanisms, non-standardized bond covenants, and unreliable bond ratings.

Insights from David Yu.

Two related issues are plaguing investors: debt risks for Chinese firms and the uncertainty as to if, when, and how China will regulate particular sectors.

Even as China’s IPO market booms, more and more firms are looking overseas – especially to the U.S.

Increasing CCP control, coupled with bureaucratic infighting, decreases the incentives for private companies to try new things.

The Chinese government continues to add oversight and structure to the rapidly growing sector.

The targeting of the fintech giant may be part politics, part personal, and part regulatory reform.