On April 29th, the CSRC (China Security Regulatory Committee) officially released the Administrative Measures for Foreign-Invested Securities Companies.
In 2017, the Chinese smartphone market saw its first ever decline, with -4% YoY growth in smartphone shipments and -4.9% YoY growth in smartphone sales.
China is on the verge of creating another uninviting barrier for the cryptocurrency market, however nothing has been set in stone yet. Xinhua, one of the main news outlets in China, released another elusive yet pressing statement on February 5, 2018 laying out some of the government's plans to further hinder Chinese citizens from accessing international cryptocurrency exchanges and ICOs.
China's recent outbound M&A has been suffering with more and more acquisitions failing due to national security concerns, Ant Financial's missed acquisition of MoneyGram being the latest. Why does national security factor into these decisions and why will it remain a crucial consideration in the future?
In China, bar code payments (including QR codes) dominate the mobile payment market. Using a bar code to pay is easy, but comes with risks. In 2017, about RMB 90 million ($14 million) was stolen due to fraud. On December 25th, 2017, the People’s Bank of China (the PBOC) released new regulation to standardize bar code payments. The regulation will come into effect from April 1st, 2018.
Evident concern on the volatility and the unforeseeable future of cryptocurrency exchanges have caused the South Korean government to take heightened steps to further inspect new crypto-trading accounts due to an “overheated market” and a number of money-laundering cases. The announcement of this act alone was followed by a downward spiral of 11% in Bitcoin's value.
The recent hype around Bitcoin continues to bring uncertainty to the financial stability of countries. Whilst some countries are accepting Bitcoin others are rejecting it and the threats that they perceive it holds.
China has long seemingly been opposed to all things crypto, having previously banned ICO’s and virtual currency trading. However, in the latest development of China’s war on crypto, it is now reportedly set to shut the Bitcoin mining industry.
With Bitcoin recently hitting an all- time high of $14,000 USD on December 7th 2017, many have been asking questions about whether the cryptocurrency’s price will continue to rise in the future or if it is simply a speculative bubble waiting to burst. The currency has risen by over $13,000 USD since the 1st of January 2017, a remarkable, and for some unfathomable surge considering it has no tangible assets or value at its core.
Since Chinese online micro lending companies Qudian and Paipai Dai have gone public on the New York Stock Exchange (NYSE), the government has been closely following the development of the micro-credit industry. Scrutiny has fallen not only their business model but also on their high revenue, which specifically caught people’s eyes. The Ningbo Jinzhou Financial Office already shut down two micro lending institutions. On November 21, 2017, the General Office of the State Council issued an urgent notice on suspending approval on the establishment of internet small loan companies. With the arising attention around financial risks, could this be the end of the industry?