Financial Reform

China will push forward market-oriented interest rate and exchange rate reform this year, according to a central bank report on China's financial stability. The People's Bank of China, the country's central bank, has pledged to further improve the issuance of credit to allow the financial sector to better serve the real economy. It calls for market-led steps to carry out innovation to make the country's financial sector more diversified and efficient, while stepping up regulatory controls to guard against possible risks.

Joining the TPP

China will study the possibility of joining the Trans-Pacific Partnership (TPP), based on careful research and according to the principles of equality and mutual benefit, said Shen Danyang, Ministry of Commerce Spokesperson, recently. The TPP is a proposed free trade agreement being negotiated by 12 nations, including the United States, Japan, Mexico, Australia and Viet Nam. "China also hopes to exchange information and materials with TPP members on the negotiations," said the spokesperson. He added that regional economic diversification should be taken into account in the building of the free trade zone, and openness, inclusiveness and transparency should be advocated.

RMB as Registered Capital

Foreign-funded insurance companies will be allowed to use renminbi as registered capital to operate in China, according to the amended Regulation on the Administration of Foreign-funded Insurance Companies. The revised regulation suggests that the minimum registered capital of equity joint venture insurance companies and wholly foreign-owned insurance companies will be 200 million yuan ($32.6 million), or the equivalent in freely convertible currency. It no longer requires the minimum registered capital to be fully paid-up.

Terror Asset Freeze

China is seeking public opinion on a draft of a regulation that would cut off funding for terrorist activities. Funds and assets used by terrorist groups and facilitators of terrorist activity should be frozen immediately after a list of such groups or people is confirmed by authorities, according to the recently-released draft. The document was jointly drafted by the People's Bank of China, the Ministry of Public Security and the Ministry of State Security. The proposed regulation is intended to support a decision on strengthening counter-terrorism efforts by improving to the process of freezing terrorist-related assets. CA

Numbers

12.9 %

China's retail sales year-on-year growth in May

3.53 billion

Number of bank cards issued in China by the end of 2012

2.5 million+

Chinese private media group StarTimes' African subscribers to digital TV programs broadcast by June