China Financial Daily:China Loosens Ceiling on QFII Fund Size Per Institution
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China Loosens Ceiling on QFII Fund Size Per Institution (SAFE, Feb 4)State Administration of Foreign Exchange (SAFE) on Thursday announced toloosen upper limit of QFII quota on individual institutions. Instead, themaximum initial QFII quota for any institution will be calculated based on itsassets under management while not exceeding USD5bn. Besides, open-endedfunds will be able to shift money in and out of the China’s stocks on a dailybasis. The lock-up period for initial principal of QFII funds was shortened to 3months from pervious 1 year. After that initial period, net withdrawal ofprincipal and gains should not exceed 20% of assets every month, accordingto new QFII rules released by SAFE.
18 A-share Listed Brokers Total NPAT Down 89% mom in Jan. (The Company,Feb 5)
18 A-share listed brokers reported their total consolidated NPAT of Rmb980mnin January 2016, down 89% mom. Specifically, consolidated NPAT for CITICS,HTS, GFS, Huatai and CMS were -Rmb600mn, Rmb132mn, Rmb468mn,Rmb261mn and Rmb75mn in January 2016, down 145% mom, 86%mom,48%mom, 52%mom and 81%mom, respectively, according to data to SHExand SZEx.
China to Allow Banks to Make Equity Investment along Lending Business (Gov,Feb 4)
China will start a trail to allow qualified financial insinuations to directly makeequity investment in companies along with lending business, according to astatement on central government website, citing State Council meetingchaired by Premier Li Keqiang on Thursday.
Sino Biopharm Terminates Agreement to Buy Cinda Shares (The Company, Feb4)
Sino Biopharmaceutical Ltd on Thursday announced to terminate subscriptionagreement to buy Cinda’s shares as assets prices dropped “significantly” afterthe subscription agreement for Cinda shares and macro environment remainsuncertain, even though the company holds a positive view on the value of aninvestment in China Cinda, according to a statement to HKEx. Besides, ChinaCinda has received a break fee of HKD10mn from Sino biopharmaceutical inrespect to the termination of the subscription agreement and no party shallhave an claim against the other one in subject to the subscription agreement.
The State Council Outlines to Crackdown Illegal Fund Pooling (Ifeng, Feb 5)
The government calls on local authorities to accelerate legislation process andrules making for private financing and emerging financial industries includingP2P online lending, crowdfunding and wealth management products. Potentialrisks of illegal fund pooling are emerging recently with slow down of economicgrowth and increasing difficulties confronted by enterprises, according toguidelines released by the state council on measures to crack down illegalfund pooling. Additionally, banks including ABC, CMB and BoCom have askedtheir cooperative third party payment companies to shut access to some illegalP2P online platforms, local media reported.