67 research outputs found
Book Review:Central Bank Regulation and the Financial Crisis: A Comparative Analysis, by Miao Han. (2016, UK: Palgrave Macmillan) Lerong Lu
No full textThis article reviews Dr Miao Han' book - Central Bank Regulation and the Financial Crisis: A Comparative Analysis by Palgrave Macmillan 2016. It is a timely work to examine central banks’ legal frameworks, crisis management tools, and latest institutional reforms in the context of global financial crisis. The author conducts a detail and in-depth comparative study of central banks in four jurisdictions: the US Federal Reserve System (US Fed), the Bank of England (BOE), the Bank of Japan (BOJ), and the People’s Bank of China (PBOC)
One country, two systems, single materiality: Hong Kong’s ESG disclosure rules for Chinese cross-listing companies and political-economic implications
No full textBitcoin:Speculative Bubble, Financial Risk and Regulatory Response
No full textIn this article, the author tracks developments in bitcoin trading and considers regulatory responses. 2017 has witnessed a so-called bitcoin bubble, as entrepreneurs and professional investors rushed into the market to take a bet on the upcoming cryptocurrency age. The price of a bitcoin exceeded 0.06 in July 2010. The popularity of bitcoin mining and trading activities has raised legal and regulatory concerns pertaining to anti-money laundering, evasion of forex regulations, the illegal fundraising of start-ups by Initial Coin Offerings (ICOs), as well as a potential financial crisis. Global financial regulators have acted proactively to regulate bitcoin. Most recently, China, once accounting for 90% of bitcoin trading volume, issued an immediate ban of ICOs and ordered the reorganisation of three major bitcoin exchanges: OKCoin, Huobi and BTCC. Over-The-Counter (OTC) transactions have not been affected. Financial authorities in certain countries have been testing state-backed cryptocurrencies
Promoting SME Finance in the Context of Fintech Revolution:A Case Study of the UK's Practice and Regulation
Get PDFSmall and medium-sized enterprises (SMEs) play a significant role in most European economies. In the UK, SMEs account for 99.9% of the total business population, 60% of the private sector employment, as well as 50% of the national GDP. However, they merely receive 17% of total business loans from the banking industry, whilst 83% of loans go to large corporations, since banks have become risk-averse after the global financial crisis. Meanwhile, the UK has witnessed a so-called financial technology (fintech) revolution in recent years, with the emergence of an alternative finance market channelling billions of pounds to SMEs annually. Arguably, fintech and alternative finance could possibly solve the long-term SME financing dilemma. Against this backdrop, this paper discusses and analyses the online peer-to-peer (P2P) lending market and digital-based challenger banks in the UK, explaining how alternative finance has been bridging the SME financing gap. Moreover, it also assesses the UK’s policies and regulatory framework over the burgeoning alternative finance market
Private Lending in China: Practice, Law, and Regulation of Shadow Banking and Alternative Finance
No full textThis book explores China’s private lending market from historical, economic, legal, and regulatory perspectives. Private lending refers to moneylending agreements between business borrowers and their debt investors without the involvement of banks. In China, it remains difficult for private entrepreneurs to obtain sufficient loans from state-owned banks. Thus, private lending has been a vital alternative financing channel for over 80 million businesses which are reliant on private funds as their major source of operating capital. The market volume of private financing stands at 5 trillion yuan ($783bn), making it one of the largest shadow banking systems in the world. Despite the wide popularity and systemic importance of private lending activities, they have remained outside of the official regulatory framework, leading to extra financial risks. In 2011, China’s private lending sector encountered a severe financial crisis as thousands of business borrowers failed to repay debts and fell into bankruptcy. Lots of bosses who found it impossible to liquidate debts ran away to hide from creditors. The financial turmoil has caused substantial monetary losses for investors across the country, which triggered social unrest and undermined financial stability.This book is a timely work intended to demystify China’s private lending market by investigating its historical development, operating mechanism, and special characteristics. It evaluates the causes and effects of the latest financial crisis by considering a number of real cases relating to helpless investors and runaway bosses. It conducts an in-depth doctrinal analysis of Chinese laws and regulations regarding private lending transactions. It also examines China’s ongoing financial reform to bring underground lending activities under official supervision. Finally, the book points out future development paths for the private lending market. It offers suggestions for global policymakers devising an effective regulatory framework for shadow banking. It appeals to researchers, lecturers, and students in several fields, including law, business, finance, political economy, public policy, and China study
How A Little Ant Challenges Giant Banks? The Rise of Ant Financial (Alipay)'s Fintech Empire and Relevant Regulatory Concerns
Get PDFThis article examines the development, business model, legal and regulatory aspects of the world’s largest fintech company – Ant Financial Services Group (Alipay). It offers an insight into how the buoyant fintech sector is reshaping the landscape of the financial industry as well as what challenges fintech has posed to traditional banks. Moreover, it points out certain financial risks associated with Ant Financial’s innovative services that merit attention from global financial regulators
Unveiling China's Stock Market Bubble:Margin Financing, the Leveraged Bull and Governmental Responses
Get PDFFrom 2014–15, China witnessed a super bull in its stock market, as the major SSE Composite Index was more than doubled, but it was followed by an unprecedented crash triggering a global sell-off. This article argues that margin trading, which means investors that borrow money from stock brokers or shadow banks to purchase shares, accounted for the stock bubble
Private Banks in China:Origin, Challenges and Regulatory Implications
No full textIn 2015, China started allowing qualified investors to set up privately funded commercial banks, which might be the largest change in China’s state-dominated banking sector in the recent decade. The privately-owned banks are said to break the monopoly of existing state-owned banks, as well as providing more loans to China’s money-starved entrepreneurs who are underserved by state-owned lenders. This article aims to introduce the latest development of privately-owned banks in China, and analyse some potential challenges faced by these newly established banks and the relevant regulatory issues
Financial Technology and Challenger Banks in the UK:Gap Fillers or Real Challengers?
No full textDiscusses how the development of innovative financial technology (Fintech) is giving rise to new "challenger banks" entering the UK market. Examines the business models of two digital challenger banks, Aldermore Bank and Shawbrook Bank, and the mobile-based Atom Bank. Suggests why challenger banks have proved popular with investors. Assesses how they are regulated in the UK and identifies some regulatory concerns
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