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Insider trading, fake disclosures targeted in crackdown by China’s stock market regulator

China’s securities watchdog said it will be on the lookout for insider trading, stock manipulation and other misconduct as it tightens its scrutiny of corporate disclosures as part of a drive to bolster confidence in the world’s second-largest stock market.Fake disclosures and infringement of the interests of listed companies will also be major areas of the crackdown on fraudulent disclosure, the China Securities Regulatory Commission said in a statement on its website. Intermediary agencies… Source link

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New rule, shadow banking crackdown will increase Chinese banks’ non-performing loan ratios, warns Alvarez & Marsal

New regulations that require mainland banks to recognise problematic loans earlier than their international peers are putting upward pressure on non performing loan (NPL) levels at the same time that a clampdown on illicit credit is underway, according to restructuring and turnaround specialist Alvarez & Marsal.Ronald Thompson, managing director for Alvarez and Marsal Asia, noted that the bad-loan measure among Chinese banks had improved recently, easing to 1.8 per cent in the first quarter… Source link

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Police arrest Kangde Xin’s major shareholder in a show of force to support regulator’s crackdown on corporate malfeasance

Chinese police arrested the owner of a company on the Shenzhen Stock Exchange on Sunday, a show of force after the securities regulator pledged to crack down on malfeasance to force the country’s listed companies to improve their corporate governance.Zhong Yu, the 69-year-old former chairman and controlling shareholder of Kangde Xin Composite Material Group, was arrested on Sunday, the public Security Bureau of Zhangjiagang city in eastern China’s Jiangsu province announced via its Sina Weibo… Source link

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Donald Trump’s crackdown on Chinese investment in US sparks huge shift into venture capital

Chinese investors, finding the US business environment uninviting, are turning to venture capital to skirt heightened scrutiny, while some have pivoted to other parts of the world altogether.Chinese foreign direct investment (FDI) into the US plummeted for the second straight year in 2018, tumbling 83 per cent to US$5 billion, according to a Wednesday report by the National Committee on US China Relations.A year earlier, FDI amounted to US$29 billion, down from the peak of US$46 billion… Source link

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China’s Tinder removed from app stores amid government crackdown on cyberspace

Tantan, a popular Tinder-like dating app in China, has been suspended from multiple app stores in the country amid an ongoing government effort to clean up content in cyberspace.The suspension was “on direction of governmental authorities in China”, Tantan parent company Momo said in a statement, without elaborating on the reason of the removal or a timeline for restoration. Tantan, however, is still available for download on Apple’s online App Store in China.The Tantan app is currently China’s… Source link

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China 

China’s P2P lending market could be decimated this year amid Beijing crackdown

This photo taken on February 4, 2016 shows investors in Chinese online peer-to-peer lender Ezubao chanting slogans during a protest in Beijing. The protest came days after China announced that 21 people had been arrested on suspicion of defrauding around 900,000 people of more than 50 billion yuan, after Ezubao turned out to be a giant Ponzi scheme. Photo: Agence France-Presse Source link

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China’s middle class still seeking protection in Hong Kong’s insurance market despite forex crackdown

China’s growing wealthy middle class population are increasingly looking to safeguard their assets and plan for the future by investing in long term insurance and saving products in Hong Kong, but strict financial controls in the mainland are limiting opportunities.The products, including critical illness insurance as well as life insurance, are often denominated in US dollar and have grown in popularity in China, with premiums collected from mainland Chinese visitors making up 30 per cent of… Source link

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China crackdown on fraudulent P2P platforms results in 62 overseas arrests, US$1.5 billion of assets frozen

Chinese police have investigated more than 380 peer-to-peer (P2P) platforms on suspicion of illegal fundraising and frozen assets worth 10 billion yuan (US$1.5 billion), following the dramatic implosion of the once-booming shadow banking sector.China’s Ministry of Public Security said it had arrested 62 suspects who were operators of fraudulent P2P platforms from 16 foreign countries including Thailand and Cambodia, the state-run news agency Xinhua reported on Sunday.This was a rare public… Source link

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Australia’s landmark banking inquiry: Tighter regulations, crackdown on ‘overinflated’ bankers’ salaries to come

A major shake-up of Australia’s massively profitable banking sector is on the cards as a landmark inquiry into abuses in the financial services industry releases its final report on Monday. Sweeping legislative and regulatory changes, a crackdown on the massive pay packets of bankers, and even criminal charges against senior executives could be among the recommendations issued by the royal commission. Major lenders – including the country’s “big four” banks, which are among the developed world’s most wealthy – have been under scrutiny in recent years, over allegations of dodgy…

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