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Kapronasia's latest report looking at the state of China's Prepaid Card Industry is now available on Kapronasia.com under the research report section.

If you are a subscriber to Kapronasia's Banking Advisory Service, the report can be downloaded after you have logged into your account. If you are not a subscriber, but are interested in purchasing the report, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.. The recording of the Prepaid Card webinar is also available in the webinar section.

On 27th July 2012, Shanghai Stock Exchange announced a guideline on measures for terminating the listings of poorly performing companies or “special treatment” (ST) companies.

According to the guideline, companies will be traded on a soon to be created new board for 30 trading days before being completely removed from the bourse. During their remaining days on the exchange, shares must trade within a required price range. The upper limit of the daily price movement is 1% while the lower limit is 5%. In addition, an investor can only buy up to 500,000 ST shares each trading day, the guideline suggested.

The new stock-delisting rules are part of broader financial reforms to China’s capital markets, in line with CSRC’s recent statement to launch an efficient system to delisted companies on the foundation of an investor-protection system. It is believed that the introduction of a delisting mechanism will lower volatility, preventing speculators from betting on dramatic fluctuations of underperforming stocks and therefore enhancing the soundness of the market.

Upcoming Kapronasia webinar on Online Payments in China

Written by Kapronasia || July 30 2012

Kapronasia will be hosting a webinar on August 8th, 2012 looking at China's Online Payments market. 

For more information on the webinar, please see the webinar description here or to register directly, go here.

The webinar is complimentary and will be looking at aspects of Kapronasia's soon to be released Online Payments Market in China report.

IMF Updated China Economic Outlook

Written by Kapronasia || July 30 2012

The World Economic Outlook Update published on July 16, 2012 announced that IMF revised its forecast for China’s GDP growth rate from 8.2% to 8.0% for this year and from 8.8% to 8.5% for next year. This down-rated outlook followed the recent announcement that China’s economy had grown at only 7.6% for 2012Q2, below the target of 8%. Recent news apparently drew a pessimistic picture for investors and consumers: risk of a hard landing is heightened.

In our opinion, however, the IMF revision could be a catalyst to refuel China’s economy. In fact, many analysts hold the view that the China’s authority is likely to announce more interest rate cuts and deposit reserve ratio reductions to further bolster the credit supply and reactivate the liquidity in the economy, which are essential to promote investment. As a result, consumer confidence will be maintained for the economic growth.

Pre-paid Card Webinar Recording now available

Written by Kapronasia || July 24 2012

A recording of Kapronasia's Prepaid Cards in China webinar is now available for viewing on Kapronasia.com. To access the recording, click on the webinar link at the top of the website.

WTO Dispute May Accelerate China’s Liberalization

Written by Kapronasia || July 24 2012

Recently, a WTO dispute panel, in response to the recent US complaint, said China is breaking the WTO rules by maintaining CUP as a monopoly supplier for the clearing of certain types of RMB-denominated payment card transactions. The specific areas where the panel determined that China had discriminated against foreign bank card suppliers are that 1) China requires all payment cards issued in China to work with the CUP network and to carry its logo, and 2) China forces all payment terminals to accept CUP network.

Top-5 Current Trends in China's Payments Industry

Written by Kapronasia || July 04 2012

Trend 1: Fourth Round of Payment Licenses

If you remember from our previous commentaries, in 2011, the People’s Bank of China (PBOC) mandated that any company providing payment products or services be licensed in order to operate. This brought a much needed dose of regulation to what was previously quite an unregulated industry. Since then, 4 rounds of payment licenses have been approved, the last being on June 28th, when another 95 payment companies qualified to provide payment products and services in China.

According to public information on the official website of Jumio, this fast-growing payment and online ID verification company based in California will be announcing additional deals with customers in Asia later this year. This is a signal for the firm’s ambition and interest in entering the Asian online payment markets, among which China is of significant importance.

BlackRock recently announced the view that emerging stock markets such as China which have underperformed till early this year, are set to take off in the second half of 2012 thanks to the strong economic growth, slowing inflation, less volatility, and cheaper valuation.

 

According to PBOC (the People’s Bank of China), driven by the proliferation of online banking in China, in 2011 the total online payment transaction value reached 700 trillion RMB, with a 33% growth rate.

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