New Rules to Derisk Investments
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BUSINESS CHINA DAILY HONG KONG EDITION Thursday, December 17, 2020 RIGHT TRACK New rules to de-risk investments Ministry asks financial institutions to aries at all levels shall not hold icy significantly as the economic each other’s shares.” recovery is becoming increasingly focus on core business, cut hierarchies Zhou Maohua, an analyst with broad-based. It will also lead to bal- China Everbright Bank, said the anced liquidity in the financial sys- By CHEN JIA fluctuations are increasing due to new rules will help streamline the tem, said Nicholas Zhu, a senior [email protected] the slower economic growth since main businesses of State-owned credit officer with Moody’s Investors the COVID-19 pandemic and the financial companies and improve Service, a global credit ratings agen- China has asked State-owned rise in new cases in some major the regulatory efficiency. cy. financial institutions to remain Western countries, experts said. “Financial resources will be The new regulations also indicate focused on their main business and State-owned financial institutions invested in areas that can support the cautious stance of the govern- Wang Chenglu, president of the software department at eliminate unnecessary operational should withdraw from business are- the growth of the real economy and ment on overseas investments by Huawei’s consumer business group, speaks at the release of hierarchies, while stepping up as that are not at the core of their limit unnecessary competition SOEs, experts said. Huawei’s developer beta version of HarmonyOS 2.0 on Wednes efforts to prevent risks from the development strategies or have not between financial service providers But some experts feel that the day in Beijing. PROVIDED TO CHINA DAILY inappropriate transactions of affili- yielded any financial returns for a in the same field.” increasingly attractive offshore ates and false capital injection, the long time, the notice said. Recent data from the banking sec- funding costs will spur an increase Ministry of Finance said on Wednes- In general, for providing the same tor, which dominates China’s finan- in offshore financing next year, as day. kind of financial service, they can cial system, showed a moderate the Chinese economy continues to State-owned financial institu- keep only one subsidiary, and there deterioration in asset quality, profit- recover and credit easing measures All Huawei products tions that are engaged in overseas should be no more than three hier- ability and capitalization during the in the onshore market will be less investment and have subsidiaries archies in the operational structure, third quarter. forthcoming compared to the first abroad should focus on their main said the notice. Financial regulators have also half of this year. to use HarmonyOS business, follow the necessary pru- The new rules also forbid false started signaling a resumption of Commenting on the bond default dential and compliance require- and circulatory capital injection de-risking measures such as tighter cases, Ivan Chung, an associate ments, and strictly implement the among different subsidiaries within supervision of the domestic system- managing director of Moody’s, said: By MA SI than a year ago, after Washington due diligence and feasibility the same group, or using share ically important banks. “We believe the Chinese govern- [email protected] restricted Huawei from using requirements, the ministry said in a pledges for financing, the Ministry Besides, the People’s Bank of Chi- ment’s willingness to support SOEs Google’s Android operating sys- notice. of Finance said. na, the central bank, is ensuring suf- will remain, but its tolerance for iso- Huawei Technologies Co said on tem. HarmonyOS is inarguably The notice is an indication that “Except for financial invest- ficient supply of liquidity to ease the lated defaults will increase as long Wednesday that it plans to expand the biggest push by Huawei to the central government is tighten- ment, subsidiaries at all levels are temporary volatility from the recent as they do not trigger systemic risks its in-house operating system Har- build its own software ecosystem. ing scrutiny of State-owned capital not allowed to hold equities of the corporate bond defaults. or undermine economic and social monyOS to all of its self-developed In September, Huawei unveiled investment, as financial risks and parent company, and the subsidi- It has not eased the monetary pol- stability.” products, including smartphones an updated version of Harmony- and tablets next year, as the Chi- OS 2.0, which is designed for the nese technology giant accelerates era of internet of things, and it can its push to build a robust app eco- be used in devices such as Hua- system amid the US government wei’s smartwatches and in-car sys- RCEP participants to expedite pact implementation restrictions. tems, as well as home appliances Yang Haisong, vice-president of from third-party companies. By ZHONG NAN explain the pact’s terms to compa- more imperative amid the world’s the software department at Hua- For instance, with HarmonyOS [email protected] nies and business associations, fight against the COVID-19 pan- wei’s consumer business group, 2.0, e-commerce giant JD’s app can said Dao Viet Anh, commercial demic. said that, so far, more than run on televisions, even refrigera- Participants of the Regional Com- counselor at the embassy of Viet- China has already Best Inc, a Chinese integrated 100,000 software developers have tors, and other screen-equipped prehensive Economic Partnership nam in China. started the approval supply chain and logistics solutions participated in HarmonyOS’ devices. Thus, hundreds of millions agreement pledged on Wednesday When the RCEP is officially provider, will start operating a development projects and the of devices including cars equipped that they will expedite the pact’s implemented, it is expected to gen- process for the RCEP 35,000-square-meter sorting center number of hardware partners has with a smart screen can run the JD implementation procedures and erate 1 percent of GDP growth for agreement ...” in Ho Chi Minh City, Vietnam, on risen from five to 10. app or any other app. make policy arrangements in Malaysia. It will not only create Thursday. The site is expected to cre- The comments came as Huawei At present, the beta version pub- advance to help companies from all broader spaces for teamwork, but Yang Zhengwei, deputy ate over 1,000 jobs over the next two on Wednesday released a develop- lic test recruitment activities have sides to share the benefits as soon as also enhance the supply and indus- director-general of the Ministry to three years. of Commerce’s Department of er beta version of HarmonyOS 2.0 been rolled out and developers possible. trial chains in the region, said See International Trade and With $8 million investment, the targeting at smartphone app and partners can apply to partici- With many RCEP members Chee Kong, minister of economic Economic Affairs facility incorporates a wide range of developers, as the Chinese tech- pate in the same for free. However, beginning to offer authoritative affairs at the embassy of Malaysia in sorting and scanning technologies nology giant works to prepare for it is open to select smartphones interpretations to their business China. that provide increased sorting transition from Google’s Android and tablets including the Mate 40 communities to make the agree- Since the implementation of the capacity and less manual processing operating system to the self-devel- series and Huawei P40 series as ment a reality, government offi- China-ASEAN Free Trade Area 2.2 of shipments. The center is capable oped HarmonyOS. well as the MatePad Pro tablet, cials from countries including agreement, or CAFTA, in 2010, trade billion of handling up to 1 million parcels The move is meant to encourage Huawei said. Japan, South Korea, Vietnam, in goods and services between Chi- population that RCEP per day, the highest parcel process- developers to come up with appli- Charlie Dai, principal analyst at Thailand, Malaysia and Australia, na and the ASEAN has grown rapid- agreement covers ing capacity in the country, said cations for HarmonyOS on smart- market research company Forrest- said they will help companies ly through deeper integration of Johnny Chou, chairman and CEO of phones, creating a sound er, said: “The US government’s make full use of preferential poli- industrial and value chains. Tariffs approved soon,” said Shigekazu Best Inc. foundation for Huawei to officially bans leave Huawei no choice but cies brought by the pact to boost on 7,000 products have been Fukunaga, a counselor at the The implementation of the use the operating system in its to accelerate research and devel- regional economic integration in scrapped under the CAFTA frame- embassy of Japan in China. RCEP arrangements will provide smartphones next year. opment to build an open tech eco- East Asia and support the global work. The RCEP agreement covers a strong impetus for improvement Wang Chenglu, president of the system of its own, from hardware economic recovery. Compared with the CAFTA, the market of 2.2 billion people, equiva- in China’s business environment, software department at Huawei’s to software for smartphones. It is a “China has already started the RCEP constitutes a bigger market so lent to 30 percent of the global pop- eradicate institutional barriers, consumer business group, said so tough journey but Huawei must approval process for the RCEP agree- it means bigger trading opportuni- ulation, with a combined GDP of and expand the scale of market far, home appliance makers like go through it to survive and ment, and plans to conclude all the ties. All of this will contribute to $26.2 trillion, or about 30 percent of access, he said.