MNI POLICY: China Woos Foreign Firms in Wealth Management

China will speed up approvals for more foreign firms participating in the domestic wealth management industry, a spokesman for the banking regulator said following the approval of a venture linking BlackRock Inc. and Temasek Holdings with China Construction Bank.

The regulator also stressed Hong Kong's place as a world's financial centre and condemned unilateral U.S. sanctions on financial institutions, according to a statement dated August 22 on the website of the China Banking and Insurance Regulatory Commission. Hong Kong's financial market and its linked exchange rate regime are operating smoothly and the CBIRC will continue to support Chinese-funded financial institutions operating in Hong Kong, the spokesperson said.

Cooperation and dialogue are the only viable options in resolving economic and financial problems with the U.S., said the spokesperson.

--BAD LOANS

The increased NPL disposals and provisions plus profit transfers to the real economy are the main reasons for commercial banks' 9.4% decline y/y in 1H profits, said the CBIRC.

The CBIRC plans to dispose of CNY3.4 trillion in non-performing assets by Dec. 31, CNY 1.1 trillion more than last year, in a move to improve the banking industry's overall stability and risk resilience, said the spokesperson.