Asia, Hong Kong, Macau and Taiwan

China

· On June 25, 2021, the People's Bank of China, together with the CBRC, the Development and Reform Commission, and the General Administration of Market Regulation, proposed 12 fee reduction measures, which will be officially implemented from September 30, 2021, covering 5 areas, including bank account services, RMB settlement, electronic banking, bank card swipe, and payment account services.

· On June 1, in order to strengthen the management of foreign exchange liquidity of financial institutions, the People's Bank of China decided to increase the foreign exchange deposit reserve ratio of financial institutions by 2 percentage points, i.e. the foreign exchange deposit reserve ratio was raised from the current 5% to 7%, effective from June 15, 2021.

· On June 22, Vice Governor of the People's Bank of China Fan Yifei held talks with Russian Finance Minister Siluanov and Deputy Governor of the Central Bank of Russia Potrzakin within the framework of the Sino-Russian Financial Cooperation Sub-Committee. The two sides mainly exchanged views on the macroeconomic and financial situation, digital currency and financial market development.

· On June 25, the HKMA issued the Financial Institutions (Disposal) (Contract Recognition Suspension of Right to Terminate - Banking Sector) Rules. The HKMA has made these Rules under section 92 of the Financial Institutions (Disposal) Ordinance (Cap. 628) to require relevant financial contracts to contain a provision that the parties to the contracts will be subject to any suspension of termination rights that the HKMA may impose in relation to those contracts. The rule is closely related to the international standards set out in the Financial Stability Board's Principles for the Cross-Border Effectiveness of Disposal Actions.

· On June 8, the CBRC solicited public comments on the "Measures for the Administration of Insurance Provisions and Insurance Rates of Property Insurance Companies (Draft for Public Comments)".

· On June 5, PBOC and CBIRC jointly issued the Assessment Measures for Financial Institutions to Serve Rural Revitalization (hereinafter referred to as "Assessment Measures"). The Assessment Measures reflect the new practices and requirements of financial services for rural revitalization. Firstly, it highlights the financial support for key areas and weak links of rural revitalization. Secondly, it further strengthens the incentive and restraint effect of the assessment and evaluation work.

· On June 27, Qianhai United Fund issued a market view pointing out that the market showed a bottom rebounding trend this week, with the GEM index taking the lead in successfully breaking out of the oscillation range. As of Friday's close, the Shanghai and Shenzhen dynamic PE valuation at 19.04 times, in the historical valuation pivot near.

· June 27, in order to layout a new round of growth market, Tongtai Fund will issue Tongtai Digital Economy Theme Equity Fund (hereinafter referred to as "Tongtai Digital Economy Theme Equity Fund") from July 7 to July 22.

The prospectus shows that Tongtai Digital Economy Theme Equity Fund invests 80%-95% of fund assets in stocks (including depositary receipts), and not less than 80% of non-cash fund assets in digital economy theme-related assets; the proportion of investment in Hong Kong Stock Exchange underlying stocks does not exceed 50% of all stock assets.

· On June 18, a collective opening ceremony was held for three foreign-invested institutions, including BlackRock Fund Management Limited, DBS Securities (China) Limited and Shanghai Financial Technology Co..

BlackRock Fund Management Co., Ltd. is the first wholly foreign-owned public fund management company approved to open in China after China abolished the restriction on foreign ownership in public fund management companies on April 1, 2020, and is another heavyweight institution of BlackRock Group's development in China, following the opening of BlackRock Jianxin Wealth Management Co..

· On June 18, in order to implement the provisions of the new Securities Law and the new Administrative Penalty Law and other superior laws, the Securities Regulatory Commission recently issued revised Regulations on Securities Market Prohibitions, which will come into effect from July 19, 2021.

Singapore

· On June 9, 2021, the Monetary Authority of Singapore (MAS) released its first sustainability report. The report sets out MAS's climate resilience and environmental sustainability strategy to: 

- Strengthen the resilience of Singapore's financial sector to environmental risks.

- Develop a vibrant green financial ecosystem.

- Build a portfolio of reserves for climate change adaptation.

- Incorporate sustainable practices in MAS's organization. 

India

· On June 4, 2021 the Reserve Bank of India announced that the aggregate exposure threshold for MSMEs will be increased from Rs. 250 million to Rs. 500 million due to the stress caused by Covid-19.

· On June 4, 2021 the Reserve Bank of India issued a statement listing various developmental and regulatory policy measures for:

- Liquidity management and support to target industries.

- Regulation and supervision.

- Financial markets.

- Payment systems.

Australia

· On June 2, 2021, the Australian Prudential Regulation Authority (APRA) has issued a letter to authorized depository institutions (ADIs) regarding the implementation of the capital framework reforms, which specifies a timeline of next steps until 2023, including:

- Conduct targeted data research to assess potential changes to the calibration of prudential standards.

- Hold regular workshops with industry to provide a forum for updates and FAQs.

- Release of preliminary details of final prudential standards, draft prudential practice guidelines and reporting requirements.

America

Brazil

· On May 9, Brazil's first carbon credit investment fund, Vitreo Carbono, officially entered the financial trading market. Industry insiders point out that the entry of the fund further broadens the financing channels of green environmental protection enterprises, and through market mechanisms, it can better guide funds to help the low-carbon economic transformation and upgrading, and promote the formation of a green production and lifestyle.

United States

· On June 8, 2021, the U.S. Commodity Futures Trading Commission's (CFTC) Market Risk Advisory Committee (MRAC) Interest Rate Benchmark Reform Subcommittee voted to recommend market best practices for converting interdealer trading practices from LIBOR to a secured overnight financing rate (SOFR) for U.S. dollar (USD) linear interest rate swaps. The MRAC subcommittee's initiative, known as SOFR First, is the third recommendation that the subcommittee has submitted to MRAC for consideration of transitioning U.S. dollar derivatives and related contracts from LIBOR.

· On June 2, 2021, the Federal Reserve announced the approval of a final rule amending Regulation D to eliminate references to the statutory interest rate on reserves (IORR) and the excess reserve rate (IOER) and replace them with a single interest rate on reserve balances (IORB). The final rule also simplifies the formula used to calculate the amount of interest on such balances and makes other minor conforming amendments.

· On June 2, 2021 the Federal Reserve announced plans to begin tapering the portfolio of the Secondary Market Corporate Credit Facility (SMCCF), a temporary emergency lending vehicle that expires on December 31, 2020. The SMCCF has proven to play a critical role in restoring market operations, supporting large employers' access to credit, and promoting employment through the COVID-19 pandemic over the last year. The sale of the SMCCF portfolio will be gradual and orderly and will minimize the potential for any adverse impact on market operations by taking into account the day-to-day liquidity and trading conditions of exchange-traded funds and corporate bonds.

Europe

United Kingdom

· On June 3, 2021, the Prudential Regulation Authority (PRA) published a consultation paper (CP10/21) on the implementation of the Basel standards for non-performing loan (NPL) securitizations. The proposals in this CP include:

- Definitions of NPL securitization and NPL securitization.

- Revised rules for calculating capital requirements for NPL securitization exposures.

- New expectations for NPA securitizations.

· The Alan Turing Institute (ATI) has released a report commissioned by the Financial Conduct Authority (FCA) that explores the use of artificial intelligence (AI) and the importance of responsible innovation in the financial services sector. The report provides:

- An introduction to artificial intelligence.

- A discussion of the general challenges and guiding principles for the responsible adoption of AI.

- A mapping of the potential benefits and harms associated with the use of AI in financial services.

- Examines the fundamental role of AI transparency in the pursuit of responsible innovation.

· On June 3, 2021, the Financial Conduct Authority (FCA) issued a statement extending the end date of the Temporary Registration Regime (TRR) for crypto asset businesses from July 9, 2021 to March 31, 2022. The TRR allows existing cryptoasset firms that applied for registration prior to December 16, 2020 and are still applying to be assessed, to continue trading.

· On June 3, 2021, the European Banking Authority (EBA) published its 2020 Annual Report, which describes the interim actions taken by the EBA to mitigate the impact of COVID-19 on the EU banking sector and its focus on assessing and monitoring the evolution of risk and improving transparency. The 2020 Annual Report also identifies strategic priority areas for 2021, including the review of the stress testing framework, the implementation of mandates in the AML/CFT area, financial innovation and sustainable finance.

· On June 18, 2021 the European Central Bank (ECB) announced that its directly supervised EU banks may continue to exclude certain central bank exposures from the leverage ratio due to the ongoing unusual macroeconomic environment resulting from Covid-19. The ECB's decision extends the leverage ratio relief issued in September 2020 until March 2022. The relief was originally due to expire on June 27, 2021.

· On June 16, 2021, the European Commission published a consultation on improving the transparency and efficiency of the secondary market for non-performing loans (NPLs). The consultation aims to inform the European Commission about the remaining obstacles to the proper functioning of the secondary market for non-performing loans and the affirmative actions that the Commission can take to nurture the market by improving the quantity, quality and comparability of data on non-performing loans. The consultation is also intended to enable the Commission to decide whether coordinated EU action and/or policy measures are needed to limit market failures.