On the 7th, the institutional reform plan of the State Council submitted to the First Session of the 14th National People's Congress for deliberation revealed that China plans to establish the State Financial Regulatory Administration to be responsible for the supervision of the financial industry except the securities industry. Strengthen capital market regulatory responsibilities, assign it to the National Development and Reform Commission's corporate bond issuance review responsibilities, and the China Securities Regulatory Commission is responsible for corporate (enterprise) bond issuance review work.
The liabilities of financial institutions were 376.61 trillion yuan, a year-on-year increase of 10.3%. Among them, the liabilities of banking institutions were 342.94 trillion yuan, a year-on-year increase of 10.4%; the liabilities of securities industry institutions were 9.68 trillion yuan, a year-on-year increase of 6%; Liabilities were 23.98 trillion yuan, a year-on-year increase of 11.7%.
"That isn't QT, but it does add to the extent to which the wave of central bank liquidity which has powered risk assets is gradually being withdrawn and even reversed – with negative consequences for risk assets," King said. Before Tuesday's BOJ surprise, King had estimated that major central banks were on course to drain around $1.5 trillion of liquidity from the global system next year, implying a 15% decline in world stocks, all else equal.
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