China revises financial regulation regime to control risks
China plans to strengthen oversight of its $60 trillion financial system by creating an expanded national regulatory body and removing some responsibilities from the central bank. According to the plan announced on February 7 at the National People‘s Congress, the new body will take over the supervision of banks and insurance and will oversee all financial sectors except the securities industry. He will take over functions, including overseeing financial holding companies such as Ant Group Co., from the central bank. “The purpose of the new regulatory body is to make sure that it covers some of the “blind spots“ in regulating illegal practices in finance, and under one roof to make sure that there is no place to discount responsibility,” said Yu Lanqiang, a representative of the fund. Manager of Pingtan Strategic Asset Management Co. The shake–up will give the Communist Party stronger control over the sector and centralize key policy decisions under President Xi Jinping during his unprecedented third term. This marks the latest development in a decade—long effort to consolidate — or at least cooperate more closely – between China‘s financial regulators, and followed an earlier merger of banking and insurance supervisors. According to the plan, the Chinese Banking and Insurance Regulatory Commission will cease to exist after major repairs, and the Chinese Securities Regulatory Commission will be transformed into a state institution reporting directly to the State Council. According to the plan, these steps are aimed at “resolving long–standing conflicts and issues in the financial sphere.” According to him, the new powers will focus on strengthening supervision of financial institutions and curbing violations. The fact that CSRC remains independent shows “that the authorities see an increase in the size of the stock market and its role in the economy in the coming years as a pool for absorbing household assets, taking the baton from property in the coming years,” Yu said.
China’s Provinces Offer Sweeteners for electric Vehicles after National Subsidies End
✅ National subsidies, which at one point returned up to 60,000 yuan (US$8,700) to electric vehicle buyers, have played a key role in stimulating the spread of electric vehicles in China. For the most part, they were a resounding success: China is the world’s largest market for electric vehicles, and the supply of passenger cars powered by new energy sources almost doubled last year to 6.5 million.
But at the end of the year, national subsidies stopped, and although electric cars are still being sold at a pace that shames other countries, growth has slowed. The heads of automobile companies began to call for the return of subsidies to the national level.
Beijing said it is working on a new policy to support the industry. Meanwhile, local authorities have taken it upon themselves to stimulate demand.
Here are some of the goodies offered in China for consumers switching to electricity:
➡️ Shanghai. Residents of the financial center of China, which has one of the highest penetration rates of electric vehicles in the country, can receive a one-time refund of 10,000 yuan when buying a new electric car to replace an existing gasoline car.
➡️ Beijing. The capital will continue to subsidize those who change their gasoline cars for electric cars. Owners who de-register cars with an internal combustion engine aged from one to six years can receive 8000 yuan, and those who replace cars with an internal combustion engine older than six years receive 10,000 yuan. According to the Beijing government, the incentives helped boost electric vehicle sales by 5 billion yuan in the second half of 2022.
➡️ Hubei. In the province of which Wuhan is the capital, the “largest car sales subsidy season” began this month with money-back offers starting at 5,000 yuan. In addition to the campaign, Dongfeng Motor Group Co., supported by the state, has started offering additional discounts on several of its Citroën, Nissan and Honda models. According to local media reports, Citroën C6 receives the largest refund amount of 90,000 yuan when taking into account the provincial subsidy and Dongfeng promotion.
➡️ Shandong. The Eastern province said it will distribute vouchers for the purchase of new electric vehicles worth 200 million yuan to buyers of new electric vehicles, and people selling their old cars will receive at least 7,000 yuan for expenses.
➡️ Zhengzhou. A manufacturing center in central China has also taken the path of buying vouchers, offering vouchers worth about 150 million yuan for residents who buy electric vehicles since the beginning of this year. People can get vouchers in the amount of 4,000 to 6,000 yuan for use in local shops and supermarkets, as well as in restaurants. There is an incentive to act quickly, because once the 150 million yuan pool runs out, there is no guarantee that there will be another batch.
➡️ Hunan. This southern province will reimburse people 5,000 yuan if they cancel the registration of their used car with an internal combustion engine and buy a new electric car. The plan is part of a goal to produce more than 1 million electric vehicles in Hunan Province, where companies including BYD Co., backed by Berkshire Hathaway, and Zhejiang Geely Holding Group Co. have manufacturing facilities.