Connecting Regions of Asia.

China’s Recovery On Track


China’s economic recovery continued in December, underpinned by booming global demand for exports, rising commodity prices, and a rallying stock market. That’s the outlook from the latest aggregate index combining eight early indicators tracked by Bloomberg, which was unchanged from last month. China was already pulling further ahead of other major economies in November, with domestic demand growing, foreign investment rising and record export demand propelling growth even as other major nations struggle amid soaring virus cases. With the Communist Party signaling there won’t be a sudden withdrawal of monetary and fiscal assistance, there’s growing confidence for a healthy expansion in 2021. Meanwhile , China’s central bank has pledged to deepen reforms in the country’s bond market and strengthen law enforcement as the $15 trillion market faces a rising wave of defaults. Top regulators from the People’s Bank of China, the top banking and securities regulators, and the Supreme Court met this week to discuss the legal framework of China’s bond market and pledged to improve disclosure, unify market standards, and boost law enforcement. Caixin has learned that regulators are working to unify market standards and rules applied to all bond issuers, in the latest effort to close the gaps in the highly fragmented market. In a first time development, Deutsche Bank (China) Co. Ltd. has been granted a fund custody license from China’s securities watchdog after about eight months of waiting for approval, according to a statement (link in Chinese) published by the regulator earlier this month. The license allows the China subsidiary of German lender Deutsche Bank AG to provide custody services for fund products in China, namely holding fund assets for safekeeping. Rose Zhu, chair of Beijing-based Deutsche Bank (China), told Caixin in early December that the bank would “take a more aggressive position” in China’s market amid the country’s financial opening-up.Japanese giant Daiwa’s China securities venture to open soon.
China’s national legislature is expected to revise the Charity Law in an effort to loosen overly stringent regulations governing online donations that threaten to throttle the fast-growing practice, a source with direct knowledge of the matter told Caixin. In recent years, online donations in China have soared, exceeding 5.4 billion yuan ($826.4 million) in 2019, a jump of 68% from the year before.
 However, loopholes in regulating money donated via online platforms resulted in high profile scandals involving fake fundraising drives.

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