Tougher rules on online lending will be introduced by the end of March in line with plans issued by the State Council on October 13, reported the Securities Daily. Online lending networks are already banned from setting up capital pools and some forms of loans, while equity crowdfunding platforms have been blocked from selling debt masquerading as equities. The current particular focus will be on preventing real estate organizations from using the Internet to make loans for down payment on homes, the report said.
PBOC summons bankers to give ‘guidance’ on slowing mortgage lending
The People’s Bank of China on October 12 summoned executives from the five major state-owned banks and twelve joint-stock banks to a closed door meeting on how to slow mortgage lending, reported Caixin. The PBOC thinks the housing mortgage market is growing too fast and wanted to stress to the banks the importance of following the government’s regulations on real estate loans, according to 21st Century Business Herald. A banker who attended the meeting said no new policies were introduced, rather the central bank stressed the need for self-discipline by lenders as the PBOC pays close attention to the real estate market, he said.
Public-private partnerships double in value
The value of public-private partnership investments in 2016 has doubled to 1.1708 trillion Renminbi, according to a release by the Ministry of Finance on October 13, said Caixin. The so-called third round of public-private partnerships compared with the 658.9 billion Renminbi in the second-round announced last year. The 516 projects in 2015 included Beijing’s seventh ring road. Public-private partnership investments have grown rapidly since 2014 when 30 projects valued at 180 billion Renminbi were announced.
China billionaires lead surge on Asia rich list
The world added 210 new billionaires last year, with 80 of them coming from China at an average age of 53, according to a joint report published by UBS and PWC, reported Caixin. Chinese billionaires made up 71% of the total in Asia last year, up 2% from 2014, according to Lu Caiyun, the director of asset management in Greater China at UBS, who added that a new billionaire is generated in Asia every three days. Almost half made fortunes in technology, consumer products and retailing, and real estate. Lu said China will account for the largest number of billionaires in the future.
Innovation and entrepreneurship key to economic reform, says Premier Li
Innovation and entrepreneurship are the key to success at large companies as well as small startups in adapting to changing demands and are key to the “Made in China 2025” initiative, said Premier Li Keqiang on a tour in Shenzhen and Dongguan, according to an Oct. 13 report by the Xinhua news agency. He added that equipment manufacturing is the cornerstone of China’s industry and traditional enterprises need to be competitive in the market, engage in the international market, and foster the invention of new technical skills.
By Lin Wanxia, Poo Yee Kai & Benny Kung