China’s initiatives to speed up the opening up of banking and insurance industry

The Bank of China Insurance Regulatory Commission announced 27 days to accelerate the implementation of the opening up of banking and insurance industry. The experts say that the opening up of the financial industry is a signal and important measure to enhance China’s economic cooperation and international economic cooperation, not only to enhance the vitality of the market, but also to bring good competition to the enterprises.

As we enter the new era of reform and opening up, China proposes to actively promote the formation of a new pattern of comprehensive opening up. On the 27 day, the Bank of China Insurance Regulatory Commission announced that it would push all the open measures to the ground as soon as possible. One of the most important concerns is to facilitate the facilitation of foreign investment, including the cancellation of the restriction on the proportion of foreign ownership of Chinese banks and financial Asset Management Co, the implementation of the proportion of domestic and foreign shares in equity investment, and the lack of restrictions on the share of foreign investment in the newly launched financial Property Investment Companies and financial companies. Wait。

In order to ensure the early landing of the relevant measures, the 27 day, the bank insurance supervision and Administration Committee also issued the “notice on further easing the market access related items of foreign banks” and “notice on opening the scope of the operation of foreign capital insurance brokers”. “I think this is China’s further reform and opening up, we further open our market in the face of the international market, and enhance the signal and important measures of China and the international economic cooperation,” said Zhu Ning, the deputy director of the national financial institute of Tsinghua University, said to China to accelerate the implementation of the opening of the banking and insurance industries to the outside world. Second, because we know that finance is a global business, further opening up the Chinese market will welcome the expansion of overseas institutions in China to promote the development of China’s financial industry and the progress of its counterparts. Third, the focus of China’s economic work this year is to prevent systemic financial risks. Further docking with global financial markets can help China transform its economic growth structure and defuse the risks of the economic development process.

The bank insurance supervision and Administration Committee (bancassurance) news shows that China will expand the business scope of foreign capital institutions, completely abolish foreign banks’ application for RMB business to meet the 1 year waiting period requirements, and allow foreign bank branches to engage in “agency issuance, agency payment, and underwriting of government debt voucher business”. Whether the acceleration of the pace of expansion of the financial industry will affect domestic financial enterprises, Zhu Ning told reporters that such worries need not be necessary. He said, “the development of the entire financial market, including customer credibility and institutional innovation, is a gradual process. In this regard, China’s financial institutions have great advantages. Second, international advanced experience also helps and promotes Chinese business partners’ own business improvement, corporate governance and internal management level. Third, Chinese enterprises and families have more and more demand for overseas investment and financing because of the economic globalization, so there are more overseas institutions serving the real economy in China, helping the transformation and upgrading of China’s economy, and playing an important role in Chinese enterprises and families.

At the same time, the BANCC will synchronously accept admittance applications for various open measures. It is understood that in the near future the commercial banks from the UK, Japan, Singapore and the insurance agencies of France and Germany have expressed their intention to establish new institutions or increase their shareholding in China. Bancassurance and supervision committee will do well in policy and admittance according to the established open plan, and promote a number of projects timely landing.

Chen Daofu, the deputy director of the Financial Research Institute of the development research center of the State Council, seems to be a process of mutual competition and mutual learning. “In fact, they have their own customers and their respective advantages. There are certain competitions among specific individual areas, but more often they are complementary, mutually learning and cooperative processes. I think more likely to provide a better choice for China to get better financial services.

Block chain may become a “accelerator” for the development of artificial intelligence

Block chain has the unique functions such as transparency, traceability, and difficulty in tampering. More and more technology companies are starting to use this technology in the business field.

At present, Qianhai micro public bank and Guangzhou arbitration committee jointly keep the loan contract elements on the block chain. Once there is a dispute such as overdue loans, the arbitration organization can make arbitration quickly and accurately based on the information stored in the block chain. In February 2018, the Guangzhou Arbitration Commission made the first non – performing loan arbitration resolution based on the block chain.

Block chains can also be used for product traceability. How can a chicken go from the farm to the table to ensure the transparency of the whole chain? Xiaoshan technology company was established using the block chain traceability system of chicken farm, will be located in Anhui the data stored in the block chain, as well as the food safety information provided to consumers nationwide, these data will also help farmers to get bank loans and agricultural insurance.

Data storage, product traceability, Internet Public Welfare… The block chain is changing the traditional rules in various application scenarios, and the major Internet Co have joined the “arena” of the block chain. For example, Baidu website has used block chains for asset securitization, and related products have been listed on the Shanghai stock exchange. The Alibaba website has built a cross border trade traceability system based on block chain; Tencent website block chain is making public service search more accurate and efficient.

Many people in the industry say that block chains are most likely to begin with mature applications in the field of supply chain finance. Qianhai micro public bank vice president and chief information officer Ma Zhitao said, if the trade data between core enterprises, a supply chain of small and medium-sized suppliers, the factoring company is stored in a block chain, chain block characteristics to ensure the authenticity of the data, and trade data between core enterprises will become an important basis for small and medium sized suppliers access to bank loans, the market demand is huge.

The combination of block chains and artificial intelligence may become another “detonating point”. Many experts believe that AI algorithms need to rely on massive data to improve performance. Block chaining can solve the problem of massive data collection and transmission well, and ensure that data is reliable and reliable. It may become an accelerator for AI development.

The growth of foreign banks in Shanghai has reached a new high in the past 5 years

Last year, the performance of foreign banks in Shanghai was brilliant. By the end of 2017, the number of foreign banks in Shanghai increased by 13% compared to the same period last year. The growth rate has reached a new high in recent 5 years. The proportion of foreign banks in Shanghai accounts for more than 10% of the banking assets, reaching 10.6% at the end of the year, the highest in the past two years.

Why will the strength of foreign banks improve quickly? This stems from China’s policy of continuing to open and the confidence of the foreign banks in Shanghai for the development of China.

In 2013, the State Council approved the establishment of the Shanghai free trade area. In Shanghai, the financial institutions in Shanghai can make use of the policy bonus of the free trade zone to actively innovate and expand their business. In 2015, Shanghai FTA expanding area, Lujiazui Financial District, Golden Bridge Development Area, Zhangjiang hi tech area three area formally incorporated into the Shanghai free trade zone.

Since 2017, due to foreign banks confidence in the economy and Chinese Chinese banking, foreign parent bank approved the Chinese banking interbank credit scale, foreign banks in Shanghai actively from the parent bank borrowing funds, investment in the domestic market, driven by investment, interbank deposit placements with industry business volume growth.

“The Belt and Road” brings opportunities to foreign banks initiative. Shanghai Banking Regulatory Bureau encourages and supports foreign-funded banks in Shanghai to actively explore and adjust operation strategies, and provide financial services for Chinese enterprises to go out through linkage. As a link, foreign banks have facilitated the business dealings between other branches of overseas banks and Chinese funded enterprises, which has contributed to the global business of the parent banks, and has also developed and consolidated business contacts with these Chinese funded enterprises in China.

Shanghai’s strong economic strength and the ability to radiate the economy are also an important reason for the enhancement of foreign banks’ strength. Located in the center of the Yangtze River Delta Economic Zone, Shanghai has strong radiation ability to the surrounding provinces and cities.

At the same time, Shanghai can also establish a 24 – hour relay business transaction with the international financial center London and New York.

The cooperation of foreign banks in Shanghai has also been strengthened. In 2017, a total of 13 new cooperation projects were carried out in Shanghai foreign banks and Chinese banks, with a total amount of 89 billion 500 million yuan.

Along with the trend of economic development and the overall demand for customer loans to pick up, foreign banks’ loans in Shanghai become more focused on the key areas of the real economy, and the loan volume continues to grow. As of the end of 2017, the loan balance of foreign banks in Shanghai to invest in manufacturing and wholesale and retail sector accounted for 52.2% of the total, higher than the banking financial institutions within its jurisdiction.

The foreign legal person bank in Shanghai has promoted the improvement of the overall service capacity of the Shanghai international financial center

The foreign legal person bank in Shanghai has its innate advantages in building an international network and a two-way investment integrated product. Shanghai Banking Bureau pointed out that Shanghai foreign banks played a positive effect in cross-border business, has the advantage of trade finance, wealth management, foreign exchange and derivative product transactions, cash management and personal finance, introduced rich products and mature approach and advanced risk management methods for the Shanghai market, and promote the overall service the Shanghai International financial center to improve the ability of.

Derivative business is foreign corporate banking business advantage, as of February 2017, Shanghai foreign banks sheet derivative transactions scale is about 4.2 times in the form of assets, derivatives trading volume in the national market share accounted for over 10% of foreign banks to import and market trading volume ranked the forefront of the market.

At the same time, foreign banks provide special financial services to enhance the financial service function of Shanghai. For example, the Shanghai Pudong Development Bank of Silicon Valley to fill the gaps in Shanghai and the national science and technology financial professional bank, provides a new financing channel for start-up technology companies; the United States banks by the parent bank financing in the film industry, Hollywood film and television production experience and business model is introduced to the Chinese film company, contributed to a number of the film and television cooperation project between China and the United states.

These foreign-funded corporate banks in Shanghai have taken concrete actions in supporting Chinese funded enterprises. By integrating into the local market of Shanghai, their businesses showed the characteristics of localization. For example, the RMB assets, loans and deposits in Shanghai are all over 70%, and the RMB business has become the main business. Local customer business accounting has increased dramatically, at present, Shanghai foreign banks loans to foreign enterprises has decreased from 45% to 74.1% at the beginning of the transformation of Chinese enterprises, while loans increased from 17.1% to 35.3%, the Chinese funded enterprises customer loan proportion has doubled.

Shanghai Banking Bureau disclosed in the official website, with foreign banks in the world have local currency operating positions and rich product business experience, to help Chinese enterprises to reduce the cost of overseas financing interest rate and exchange rate; with the bank group platform integration advantages, reduce the management cost of overseas financing. For example, Dahua Thailand, in order to reduce the financing cost of a rubber group in Thailand, and make use of the advantage of the high credit rating of Singapore’s Dahua bank, borrow floating interest rate dollars at low cost in the US dollar lending market, and provide the US dollar loans to customers in Zhejiang. Meanwhile, because the actual demand of customers is the Thai baht fund with fixed interest rate, in order to avoid unnecessary cost caused by fluctuating interest rate and exchange rate fluctuation, Dahua Thailand provides interest rate swap and US baht currency swap for its customers.

In 2018, the Internet Co and commercial banks will jointly open a new era of deep integration

The reason why Internet Co and commercial banks are competing towards competition from the external environment is mainly due to the following two aspects. First of all, with the development of technology, customers’ financial needs and consumption habits have undergone profound changes. It’s a common task for them to better adapt to customer changes and meet customer needs. Secondly, in recent years, the financial regulatory policy has been tightening up. The “strict supervision” behavior represented by the regulation of Internet financial risks and the regulation of the market chaos of the banking industry has brought pressure on both sides, and strengthening cooperation has become the common need of both.

More importantly, there is a clear complementary relationship between the two. In the core of the credit business of commercial bank funds, low cost, high quality risk management practitioners, rich experience, has the advantage of providing large and long term loans; Internet Co process is simple and quick, good customer experience, rich application scenarios, in the volume of business and information collection processing has obvious advantages, better at providing small loan.

From the data perspective, the two have data are different in origin, scope, nature and the way, the customer data Internet Co for unstructured data, data of a commercial bank focused on structured data, which also determines both in the aspect of data processing have their respective comparative advantages. Baidu and the Agricultural Bank of China, for example, covered by Baidu search, maps and other traffic entrance based on the O2O system and consumer electronic business transactions with customers online scene, behavioral data rich; and ABC relying on the line under the huge network system and perfect risk management system, with large size and high quality customer identity information and finance transaction data.

Therefore, we can optimistically predicted that in 2018, the Internet Co and commercial banks will jointly open a new era of deep integration, based on complementary advantages, benefit sharing, cooperation between the two sides of the products and services will gradually fall, and produce a synergistic effect and scale effect 1+1>2. “Finance”, “financial”, the intention is financing, the future more will mean “integration”. And this integration will bring more choices and better services to the real economy and the financial consumers.

The strong combination of Internet Co and commercial banks, especially the deep integration of AI and finance, will give birth to the new financial service mode of intelligent finance. The new generation AI development plan defines the three steps and six specific tasks of AI development in China. For the first time, it puts forward the concept of Intelligent Finance for the first time. Perhaps, 2018 will be the first year of China’s smart finance. It is foreseeable that the deep integration of Internet Co and commercial banks is focused on the field of intelligent finance.

Here more than 80 years of age and the elderly enjoy per capita allowance

Chinese Changsha learned from the Municipal Bureau of civil affairs, Changsha will implement inclusive nature of the “old age allowance” system, where Changsha Hukou aged 80 years old and above urban and rural elderly enjoy per capita allowance.

By the end of 2017, there were about 1 million 340 thousand elderly people over the age of 60 in Changsha, and 180 thousand elderly people over 80 years old. Among them, 16 thousand were over 90 years old, 268 people were over 100 years old.

In 2010, Changsha issued the circular on the establishment of a living allowance system for the oldest old, and implemented the age allowance system for the elderly over the age of 80 from January 1, 2011. However, the elderly in the age of 80-89 years old can only enjoy the age allowance.

The adjustment of the age allowance system has changed from a particular crowd to a comprehensive general benefit. The age allowance for the age of 80-89 is no longer aimed at the low income elderly. As long as the Changsha city residence, 80 years of age for the elderly enjoy allowance policy, benefit the population increased by more than 9 people to about 180 thousand elderly people.

Changsha City allowance payment standard has also been greatly improved, from the original 80-89 years old people $50 per person per month increased to $100, 90-99 years old people increased to $100 per month for 200100 years old and above old people $300 per person per month increased to $500. To this end, in 2017, Changsha OAA financial investment of about $67 million, dibiao extended surface after the financial investment will reach $240 million a year.

At the end of 2017, the remaining balance of China’s banking financial products was 29 trillion and 540 billion RMB

China banking financial market reports of banking financial registration hosting Center recently released “(2017)” shows that as of the end of 2017, the national banking financial products subsisting amounted to 29 trillion and 540 billion RMB, increased by 490 billion compared with the beginning of RMB, an increase of 1.69%, the growth rate fell 21.94 percentage points. Among them, the financial industry scale and accounted for relatively early “double down”. In addition, the standard assets, such as bonds, are the main assets in the allocation of financial funds, while the new issue of financial products is dominated by low risk grades.

In 2016, the national banking financial products were 29 trillion RMB, an increase of 5 trillion and 550 billion RMB from the beginning of the year, with an increase of 23.63%. The growth rate of the 2017 bank financial cliff drop less than 2016 by 5 trillion and 60 billion RMB. And the monthly year-on-year growth rate has declined for 8 months in a row. From the view of structure, it is mainly that in recent years, the scale of financial management has fallen by leaps and bounds.

The report shows, interbank financing scale and accounted for relatively early “double down”. By the end of 2017, the remaining balance of the financial industry products was 3 trillion and 250 billion RMB, accounting for 11% of the remaining balance of all financial products. The remaining balance of financial industry products decreased by 3 trillion and 400 billion RMB at the beginning of the year, down to 51.13%, and the decline of 11.88 percentage points at the beginning of the year.

In sharp contrast, the remaining balances of financial products issued by individual investors, such as general human, high net worth and private banking, account for 66.99% of the remaining balance of all financial products. Among them, the average balance of human products increased by 2 trillion and 760 billion RMB compared with the beginning of the year, an increase of 23.31%, accounting for 49.42% of the remaining balance of all financial products, an increase of 8.68 percentage points compared with the beginning of the year. Personal financial products are sold in 31 provinces in the mainland of China (autonomous regions and municipalities directly under the central government).

From the asset allocation situation, bonds, bank deposits, inter-bank lending and resale, interbank deposit and other standardized financial asset is the main asset allocation of funds, as of the end of 2017, accounted for 67.56% of the balance of financial products investment, the bond asset allocation ratio of 42.19%.

What are the possible applications of the block chain?

Bitcoin is one of the applications of block chain, and it is also the most popular application. It is believed that through a large number of popular science articles, the readers have been very clear about the relationship between the block chain and the bitcoin. Taking bitcoin for example, it is the first successful encrypt currency in the world, an asset that is independent of any regulatory financial system. The price of bitcoin has fluctuated sharply, and the unit price soared to $19000 from $1028 a year ago, and recently slipped to $8000. For speculators, we are not sure whether we will go to the moon or go to hell at last. But the future of money is that you and I may have their own currencies.

What are the possible applications of block chains in addition to bitcoin?

Remittance: the global remittance market has a scale of $600 billion a year, the main source of which is created by migrant workers. Our imaginary hero called Crisha, is a perennial working abroad maid, to send home $300 a month, usually used for Western Union remittance channels. She would have to pay at least $15, about four to seven days later. Recently, her townsman told him that there was an application of bitcoin remittance called Abra. Her family could confirm money in a few minutes by mobile phone, and the fee was only half of the original one.

Sharing the economy: second potentially subversive industries are the shared economy. The original intention of the shared economic model is to create higher value by reducing the cost and improving the efficiency, so as to achieve sharing and win-win. But the reality and the original intention are opposite, whether by drop or other sharing model, their success is almost based on the non – sharing. Take an estimate of 56 billion dollars, for example, if a distributed application based on block chain is called DaDa trip, its design principle is owned by all drivers possessing vehicle. If a passenger needs to use a car, he or she can make the corresponding choice through App, find the driver and pay directly after the transaction is completed — all these functions can be realized in the application of block chain.

Big data: we know that in the data age, the data is Data is the new oil. The data has become a more important asset class compared with the agrarian age, the industrial age plant and even the money and money. As the creator of the data, we do not have the right to speak or even know nothing of what we have left in our lives. Those “Big Macs”, by way of calculation, not only profiteers from these data, but also know themselves more than ourselves. On the surface, we enjoy unprecedented convenience, but we also bear the risk of exposure to our privacy. The new application of block chain technology allows us to regain the right to self – identity management.

China UnionPay non card service transfer clearing platform has been docked with more than 70 Payment institutions to complete the platform or is carrying out docking work

China UnionPay new generation Union free card transfer platform has been operated for nearly half a year. Since January 29th, it has formally launched various large-scale business carrying services to all kinds of member agencies.

China Unicom’s new generation of no card business transfer clearing platform was launched in 2017 and completed in the year. It has completed networking with major commercial banks including 17 national key commercial banks and more than 180 regional banks.

The responsible person said that at present, China UnionPay adhere to the principle of marketization, and has reached a cooperation consensus with hundreds of member agencies including more than 10 main payment institutions, of which more than 70 institutions have completed platform docking or are carrying out docking work.

The net profit growth rate of 13 A – share listed banks increased significantly compared with the same period of last year

Looking at the announcement and combining with Wind data, as of January 26th, 13 A – share listed banks have disclosed the 2017 performance express. Respectively :
China Merchants Bank (33.540,0.07, 0.21%),
Xingye Bank (18.810, 0.12, 0.64%),
Pufa Bank (13.380, -0.03, -0.22%),
The Bank of Shanghai (16.380, 0.34, 2.12%),
The Bank of Jiangsu (8.180,0.02, 0.25%),
The Bank of Nanjing (9.750, -0.17, -1.71%),
The Bank of Hangzhou (12.810,0.07, 0.55%),
The Bank of Changshu (8.340, 0, 0%),
The Bank of Wuxi (9, 0.00,0.00%),
The Bank of Jiangyin (8.850, -0.22, -2.43%),
The Bank of Zhangjiagang (10.680, -0.72, -6.32%),
Bank of Wujiang (9.580, -0.09, -0.93%)
Bank of Guiyang (17.100, 1.41,8.99%).

Data show that most of the 13 A share listed banks have recovered since 2017, and net profit growth rate has increased significantly compared with the same period last year.

In bad debt, by the end of 2017, the 13 banks’ non-performing loan rate has been down compared with that of Pudong Development Bank, and asset quality has been relatively stable. On the other hand, as of January 26, 2018, in the industry classification of Shen Yi class, the banking sector ranked the forefront of all sectors of A shares with a gain of over 13% this year, and achieved a good start.

As of January 26th, the data disclosed by 13 A share banks showed that the net profit attributable to shareholders of the parent company amounted to 232 billion 290 million RMB, which means that 13 banks earn 636 million yuan on average, which is more than 80% of A share listed companies’ 2016 annual net profit.

The 13 banks earned a total of 663 billion 517 million RMB in 2017, of which 9 achieved a year-on-year increase in revenue. Net profit of 13 banks, 2017 have achieved an annual net increase is 9 banks have achieved more than two digit growth rate, which the Bank of Changshu (601138, SH) 21.71%, Guiyang Bank (601997, SH) 23.97% net profit growth rate is the highest.