Core Viewpoint - The implementation of the "Financial Infrastructure Supervision and Management Measures" marks a significant improvement in China's financial infrastructure regulatory system, emphasizing centralized regulation, safety prioritization, and international benchmarking [1][2]. Regulatory Framework Reconstruction - The Measures, jointly issued by the People's Bank of China and the China Securities Regulatory Commission, represent the first comprehensive departmental regulation covering financial infrastructure supervision in China [2][3]. - The Measures establish a dual-head regulatory system led by the central bank and the securities regulator, moving away from the previous multi-department governance model [3]. Operational Compliance Adjustments - The Measures require operational institutions to establish clear governance structures and effective accountability mechanisms, including a risk management committee [4]. - Institutions must enhance their risk management frameworks, ensuring robust identification, measurement, monitoring, and management of various risks, alongside stringent data security management [4]. - The scope of data localization has been narrowed from "all data" to "personal information and important data," with disaster recovery centers required to be located within China [4]. Impact on Financial Institutions - The Measures are expected to increase compliance costs and management capabilities for operational institutions, indirectly affecting participants in the financial infrastructure [5]. - Financial institutions, as core participants, will face stricter compliance and risk management standards, as well as more refined operational coordination and settlement efficiency requirements [5].

Group 1: New Regulations Implementation - The revised Anti-Unfair Competition Law will take effect on October 15, 2025, addressing issues like "involution" competition and "brand hijacking" [1] - Starting October 1, 2025, the civil aviation sector will fully transition to electronic invoices, eliminating paper travel itineraries for domestic flights [1][2] - The railway sector will also implement electronic invoices from October 1, 2025, allowing passengers to request electronic invoices within 180 days after their journey [2] Group 2: Financial Infrastructure and Tax Regulations - The Financial Infrastructure Supervision Management Measures will be enacted on October 1, 2025, focusing on the regulation of financial infrastructure operations and risk management [2][4] - Internet platform companies will begin formally reporting tax-related information on October 1, 2025, promoting tax fairness and curbing illegal investment practices [6] - New regulations for internet lending will be implemented, emphasizing strict adherence to existing management rules and cost considerations [9][10] Group 3: Company Registration and Stock Code Changes - The Implementation Measures for Mandatory Company Registration Cancellation will take effect on October 10, 2025, detailing the procedures for forced cancellations [10] - The Beijing Stock Exchange will switch to new stock codes starting October 9, 2025, for existing listed companies [11]

Core Viewpoint - The Shanghai Clearing House recently held a conference on interbank credit derivatives, emphasizing the importance of contract-based credit derivatives in financial markets for pricing, risk management, and credit enhancement [1] Group 1: Conference Overview - The conference included representatives from 14 market institutions, such as the China Interbank Market Dealers Association, commercial banks, and securities companies [1] - Shanghai Clearing House presented on the development of contract-based credit derivatives and clearing services [1] - Representatives from SPDB and Guotai Junan Securities shared practical applications and trading strategies related to credit derivatives [1] Group 2: Importance of Credit Derivatives - Credit derivatives serve as crucial tools for price discovery, risk management, and credit enhancement, significantly impacting bond market pricing and risk management efficiency [1] - The Shanghai Clearing House plays a vital role in providing bilateral and central counterparty clearing services for credit derivatives, enhancing market infrastructure [1] Group 3: Future Directions - The Shanghai Clearing House plans to continue developing the credit derivatives market under the guidance of the People's Bank of China, focusing on market needs and collaboration with various parties [1] - There is an emphasis on product innovation, mechanism optimization, and expanding the business scope to support the high-quality development of the interbank credit derivatives market [1]

Core Viewpoint - The People's Bank of China and the China Securities Regulatory Commission have issued the "Financial Infrastructure Supervision Management Measures," which focus on the regulation of financial infrastructure operations, risk management, and corporate governance, aiming for unified regulatory standards in the financial market. The measures will take effect on October 1, 2025 [1][2]. Group 1: Regulatory Framework - The measures consist of six chapters and thirty-seven articles, establishing a comprehensive regulatory framework for financial infrastructure, including operational, risk management, and governance rules [2]. - Financial infrastructure is defined to include systems for asset registration, clearing and settlement, trading facilities, important payment systems, and credit systems. Illegal establishment or operation of financial infrastructure is prohibited [2][3]. - The introduction of these measures is seen as timely, providing a detailed institutional framework for the standardized development of financial infrastructure in response to the increasing complexity and risks in the financial market [2][4]. Group 2: Risk Management and Oversight - The measures aim to enhance risk management and oversight by establishing clear standards for identifying systemically important financial infrastructure and macro-prudential management requirements [4][5]. - The framework includes provisions for inspections, penalties, recovery, and exit strategies, ensuring a complete regulatory loop from entry to operation to exit [4]. - The measures shift risk monitoring from reactive to proactive, allowing for early warnings and reducing the space for regulatory arbitrage, thereby fostering a fair and transparent market environment [4][5]. Group 3: International Alignment and Competitiveness - The measures emphasize the need for financial infrastructure to align with international standards, such as the "Principles for Financial Market Infrastructures (PFMI)," while considering China's specific circumstances [6][7]. - The implementation of these measures is expected to enhance the safety, stability, and efficiency of financial infrastructure, ultimately supporting the development of the real economy and improving China's competitiveness in the international financial market [7][8].

Core Viewpoint - The introduction of the "Financial Infrastructure Supervision and Management Measures" by the People's Bank of China and the China Securities Regulatory Commission aims to establish a unified and efficient regulatory framework for financial infrastructure, effective from October 1, 2023 [1][2]. Group 1: Regulatory Framework - The new measures consolidate the regulation of six types of financial infrastructure into a unified framework, addressing previous fragmented oversight and enhancing regulatory clarity [2][3]. - The measures define the responsibilities of regulatory bodies and emphasize risk management, corporate governance, and operational requirements [2][3]. Group 2: Systemic Importance - The concept of "systemically important financial infrastructure" is introduced, with clear criteria for its identification, enhancing centralized oversight by the People's Bank of China [2][3]. - This approach aims to maintain the stability of the financial system while ensuring effective management of significant financial infrastructure [2]. Group 3: Operational Compliance - Financial infrastructure operators are required to operate under licenses, preventing illegal establishment and operation of financial infrastructure services [3]. - The measures outline comprehensive regulations from institutional entry to daily operations and supervision, ensuring compliance and stability in financial infrastructure operations [3]. Group 4: Impact on Financial Markets - The implementation of these measures is expected to positively influence financial markets by upgrading core processes such as clearing, settlement, and registration, thereby enhancing market transparency and efficiency [2]. - In the long term, a well-structured and effectively governed financial infrastructure will support cross-border financial cooperation and the internationalization of the Renminbi, increasing China's influence in global financial rule-making [2].

Core Viewpoint - The introduction of the "Financial Infrastructure Supervision and Management Measures" by the People's Bank of China and the China Securities Regulatory Commission aims to establish a unified and efficient regulatory framework for financial infrastructure, effective from October 1, 2023 [1][2]. Group 1: Regulatory Framework - The new measures consolidate the regulation of six types of financial infrastructure into a unified framework, addressing previous fragmented oversight and enhancing regulatory clarity [2][3]. - The measures define the responsibilities of regulatory bodies and emphasize risk management, corporate governance, and operational requirements [2][3]. Group 2: Systemic Importance - The measures introduce the concept of "systemically important financial infrastructure" and establish criteria for its identification, enhancing centralized oversight by the People's Bank of China [2][3]. - This approach aims to maintain the stability of the financial system while ensuring effective management of significant financial infrastructure [2]. Group 3: Operational Compliance - Financial infrastructure operators are required to operate under licenses, with strict prohibitions against illegal establishment and operation of financial infrastructure services [3]. - The measures outline comprehensive regulations from institutional entry to daily operations and supervision, ensuring compliance and stability in financial infrastructure operations [3]. Group 4: Long-term Impact - In the short term, the measures are expected to enhance the standardization of core processes such as clearing and settlement, improving market transparency and efficiency [2]. - In the long term, a well-structured and effective financial infrastructure system will support cross-border financial cooperation and the internationalization of the Renminbi, increasing China's influence in global financial rule-making [2].

Group 1 - The Shanghai Clearing House and the Agricultural Development Bank of China aim to enhance strategic collaboration focusing on policy banks and financial infrastructure responsibilities [1] - Both parties will concentrate on the "five major articles" of finance, deepening cooperation in issuance mechanisms and thematic financial bonds [1] - There is a commitment to promote the brand value of "Agricultural Development and Clearing" and build an ecological circle, while innovating in derivative products related to agricultural development bonds [1] Group 2 - The goal is to improve the efficiency of primary market issuance and the activity of the secondary market for agricultural development bonds [1] - The collaboration is positioned to support the high-quality development of the financial market [1]

Core Insights - The People's Bank of China announced eight significant financial opening measures aimed at enhancing the international competitiveness and risk management capabilities of China's financial market, while providing more efficient and diverse support for the real economy and cross-border trade [1][5] Group 1: Financial Infrastructure and Data Governance - The establishment of a trading report repository and personal credit institutions is intended to improve financial infrastructure, enhance information transparency, and provide a data foundation for macro-prudential management and precise regulation, effectively preventing systemic financial risks [2][3] - The trading report repository will aggregate and analyze high-frequency trading data across various financial sub-markets, serving financial institutions and regulatory bodies [2] - The establishment of personal credit institutions aims to optimize the credit market layout and enhance the social credit system, with market-oriented institutions expected to provide over 70 billion credit services in 2024 [3] Group 2: Cross-Border Financial Policies - The policies include optimizing the free trade account functions to facilitate efficient capital flow between quality enterprises and foreign funds, thereby enhancing the liberalization and convenience of cross-border trade and investment [5][6] - The pilot program for offshore trade financial services in the Lingang New Area aims to support the development of offshore trade, with innovations in business rules expected to improve efficiency in cross-border payment settlements and trade financing [6][7] - The "Cross-Border Refinance" pilot program initiated by the Shanghai headquarters of the People's Bank of China focuses on providing refinancing support for cross-border trade financing, alleviating financing difficulties for foreign trade enterprises [7] Group 3: Shanghai as a Financial Reform Pilot - The eight policies are primarily implemented in Shanghai, highlighting its role as a core area for institutional supply and rule experimentation, which is expected to accelerate the nationwide dissemination of successful financial reform outcomes [8][9] - The construction of the Shanghai International Financial Center is emphasized as a critical task, with many significant financial reform policies originating from Shanghai and being replicated in other regions [9]

Core Viewpoint - The "Financial Infrastructure Supervision and Management Measures" has been approved and will take effect on October 1, 2025, aiming to strengthen the regulation and construction of financial infrastructure in China [1][3]. Group 1: Definition and Importance of Financial Infrastructure - Financial infrastructure includes systems for asset registration, clearing and settlement, trading facilities, important payment systems, and credit systems, serving as a crucial backbone for financial market operations [2]. - The establishment of a robust financial infrastructure is essential for ensuring the safety and efficiency of financial markets, especially in the context of complex international environments and rapid financial technology advancements [2][9]. Group 2: Regulatory Framework - The management of financial infrastructure will follow the principle of "who approves, who supervises, who is responsible," with specific regulatory responsibilities assigned to the China Securities Regulatory Commission and the People's Bank of China [4][5]. - The new measures will integrate financial infrastructure regulation into a macro-prudential regulatory framework, enhancing collaboration among regulatory bodies [5]. Group 3: Entry Requirements for Financial Infrastructure Operators - Financial infrastructure operators must be legally established entities in China, with clear governance structures, adequate capital, and necessary operational facilities [8]. - Foreign financial infrastructure providers must meet specific conditions, including a minimum of three years of operational experience and compliance with regulatory standards in their home countries [8]. Group 4: Risk Management - The measures emphasize the need for a robust risk management framework to identify, measure, monitor, and manage various risks associated with financial infrastructure operations [9]. - Financial infrastructure operators are encouraged to establish risk management committees based on relevant principles, allowing flexibility in their governance structures [9].

Core Points - The People's Bank of China and the China Securities Regulatory Commission have issued the "Financial Infrastructure Supervision Management Measures," which will take effect on October 1, 2025 [1] - The measures focus on the regulation of financial infrastructure operations, risk management, and corporate governance, establishing standards for identifying systemically important financial infrastructure and macro-prudential management requirements [1] - The regulations aim to unify supervision standards for financial infrastructure, ensuring a safe, stable, and efficient operation of the financial market [1] Summary by Sections - **General Principles**: The measures consist of six chapters and 37 articles, covering general principles, establishment, operational requirements, supervision management, legal responsibilities, and supplementary provisions [1] - **Operational Requirements**: The measures enhance the operational and risk management frameworks for financial infrastructure, aiming for a robust and resilient financial system [1] - **Supervision and Management**: The People's Bank of China will continue to strengthen the construction and coordinated supervision of financial infrastructure, promoting a well-structured and effective governance system [1]