China Financial Daily:PBOC to Amend Reserve Ratio Method Based on Avg.Deposit Bal

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　　PBOC to Amend Reserve Ratio Method Based on Average Deposit Bal. (PBOC,June 3)

　　Starting from July 15th this year, banks and financial institutions’ reserverequirement levels will be calculated based on average deposit balance duringa certain period instead of period-end balance, in order to smooth moneymarket volatility and improve banks’ liquidity management, according to aPBOC statement. In addition, offshore banks’ required reserves for RMBdeposits on mainland will be set based on average daily balance ofoutstanding deposits in previous quarter.

　　Mutual Fund Special Account AUM Grew by 22% in 5M16 to Rmb15.34trn(21cbh, June 5)

　　Special account AUM in mutual fund and mutual fund subsidiaries grew by22% in the first five months this year (or up 7% compared with 1Q balance) toRmb15.34trn, 21cbh reported, citing saying from CSRC deputy chairman LiChao. Special account in mutual fund subsidiaries is mainly conductingchannel business for banks whose AUM reached Rmb9.8trn in 1Q16.

　　However, CSRC in late May issued document to impose capital requirement onmutual fund subsidiaries which may significantly cap such channel businessgoing forward.

　　China Said to Impose Capital Rules on Futures Companies’ AM Subsidiaries(Caixin, June 3)

　　CSRC in early May issued consultative document on futures companies’ assetmanagement subsidiaries and may impose capital requirement to capaggressive AUM expansion, Caixin reports, citing people familiar with thematter. The consultative document requires minimal paid-in capital ofRmb20mn for future companies to open AM subsidiaries. Currently, the AUMof these futures AUM subsidiaries are relatively small with Rmb139.8bnreported as of 1Q16.

　　CSRC Approves 9 IPOs Raising No More Than Rmb5.3bn (CSRC, June 3)

　　CSRC on June 3 granted green light to IPO applications from 9 companies withtotal raising amount no more than Rmb5.3bn, including 4 in SHEx and 5 inSZEx, according to statement on CSRC website.

　　China Problematic P2P Platforms See a Jump in May (Xinhua, June 5)

　　Number of P2P platforms that run into troubles in May jumped by 113% momto 200, being the record month, while only 1 new P2P platform set up duringthe month. 123 or 62% of the new problematic platforms were lost contact ordisappear while the rest were due to business operation suspension or shutdown. As of May 2016, there were 4,809 P2P platforms in China with 2,061being problematic platforms, Xinhua reported, according to data fromYinghang.com.

　　Citic Bank President Li May Be Promoted As Chairman (21cbh, June 3)