1. The capital market reform was deepened, and the science and Innovation Board welcomed the market maker system. On January 7, the CSRC issued a number of documents, including the provisions on the pilot of stock market making trading business on the science and Innovation Board of securities companies (Draft for comments), the rules for the spin off of listed companies (Trial), the guidance on the transfer of listed companies to the board of the Beijing stock exchange, the rules for the share repurchase of listed companies, the rules for the suspension and resumption of trading of shares of listed companies, and so on, Revise the rules on changes in shareholding of directors, supervisors and senior executives, revise a number of guidelines and provisions of Shanghai and Shenzhen Stock Exchange, and revise the stock listing rules of Shenzhen Stock Exchange. Among them, the proposed introduction of the market maker system into the science and innovation board is the biggest highlight. The heavy asset business structure of Chinese securities companies is also expected to change significantly, from self-supporting to market maker and agency business in the past, so as to improve the certainty of performance.
2. The first performance forecast of listed banks is released, and it is expected that the bank’s performance will continue to pick up. On January 4, the first performance forecast of listed banks for 2021 was released, Bank Of Chengdu Co.Ltd(601838) disclosed that the net profit attributable to shareholders of Listed Companies in 2021 is expected to increase by 1.085 billion yuan to 1.507 billion yuan compared with the same period of last year, an increase of 18% to 25% year-on-year. The performance of listed banks continued to pick up in the first three quarters of 2021. Under the bottom line thinking of supervision, we believe that the probability of large-scale credit risk release in the industry is small, and the fundamentals of banks are stable as a whole. It is expected that the net profit growth of listed banks in 2021 / 2022 will be 11.0% / 8.3% respectively.
3. The issuance of a new round of financial science and technology development plan is clearly based on strengthening the application of financial data elements. Recently, the central bank issued the financial technology development plan (2022-2025) (hereinafter referred to as the plan). The plan prepares the second round of financial science and technology development plan for the central bank, proposes to clarify the four basic principles and eight key tasks of financial science and technology development based on strengthening the application of financial data elements, in order to further promote the sound governance system of financial science and technology, improve digital infrastructure and promote the deeper integration of Finance and science and technology, Promote China’s financial science and technology from “column and beam” to a new stage of “accumulation and potential”.
4. The business scope of Payment institutions is broadened and cross-border RMB settlement under current account can be provided. On January 7, in order to implement the State Council’s opinions on accelerating the development of new formats and models of foreign trade (GBF [2021] No. 24), the central bank drafted the notice on supporting cross-border RMB settlement of new formats of foreign trade (Draft for comments) (hereinafter referred to as the notice) to solicit opinions from the public. The deadline for feedback is January 22, 2022. The notice stipulates that domestic banks can cooperate with non bank payment institutions and legally qualified clearing institutions that have obtained Internet payment business licenses according to law to provide current cross-border RMB settlement services for market transaction subjects and individuals.
