In the News: China, UK Plan Bond Connect; Immigration Rules Ease; and Lufax Quits P2P Lending
July 22, 2019 | BY
Marilyn RomeroFollowing on the success of the Stock Connect program, China and the U.K. are now planning a Bond Connect scheme; China eases immigration rules to attract more foreign talents; and Ping An’s Lufax platform is rumored to be quitting P2P lending.
London Stock Exchange.
China, UK plan Bond Connect program
China and the U.K. are planning to establish a two-way bond connect scheme and have agreed to set up a working group to study the feasibility of such a program, according to media reports. The move follows the successful launch of the Shanghai-London Stock Connect program last month and forms part of China’s efforts to further open up its financial market. Speaking at Bloomberg’s Navigate the New Silk Road 2019 event in London, China’s ambassador to the UK, Liu Xiaoming, said the two countries want to launch an equivalent connect scheme to the Shanghai-London Stock Connect for their bond markets. In July 2017, the Chinese government launched Bond Connect to make it easier for overseas investors to access the country’s onshore bond market, which is the second largest in the world according to the Bank for International Settlements.
More from CLP: China Drafts New Rules to Promote Bond Investments by Foreign Investors; Shanghai-London Stock Connect Goes Live With Huatai Securities Debut; Ministry of Finance and State Administration of Taxation, Circular on the Policy for Enterprise Income Tax and Value-added Tax on Investments in the Domestic Bond Market by Foreign Organizations
China eases immigration rules to lure highly skilled overseas workers
In August, China will relax immigration rules to allow highly skilled workers and foreigners easier access to the country. China’s Ministry of Public Security announced on Wednesday that the new rules will open the door to more highly skilled overseas talents to enter China and for budding overseas entrepreneurs to start a business in the country. Under the more relaxed rules, those with in-demand skills and those whose annual income or taxes are over a specified threshold can apply for permanent residence, along with their spouses and underage children. Those talents who come to China to study, or for business or employment, can apply for a long-term visa that lasts between two and five years. According to the State Immigration Administration, more than 133,000 visas and permanent residency permits have been issued to foreign entrepreneurs, investors, and technology and business executives since 2015.
More from CLP: Central Committee of the Communist Party of China and State Council, Guiding Opinions on Supporting Comprehensive and Extensive Reform and Opening in Hainan; In the news: China announces economic goals, the finance minister signals credit expansion and Baidu CEO suggests relaxing visa rules
Regulatory hurdles force Lufax to ditch P2P lending business
Ping An Insurance-backed online wealth management platform Lufax is reportedly planning to exit its core peer-to-peer, or P2P, business due to regulatory hurdles. According to sources interviewed by Reuters, Lufax has already started the process of applying for a license in consumer finance, which it intends to focus on after ditching the P2P business. In March, the company hinted at a transformation from P2P to wealth management when it announced plans to set up a platform to facilitate global asset allocation for middle income earners in Asia and Chinese investors. Sources said Lufax has struggled since 2016 to meet requirements for P2P lenders to register with local authorities. P2P lending saw explosive growth with little oversight until three years ago, when authorities started cracking down on the sector.
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