Microcredit companies find their feet

As we mentioned last year (CC Sept 3 2009 Financial China), the China Banking Regulatory Commission (CBRC) and People's Bank of China (PBoC) announced a pilot project in May 2008 to allow the establishment of microcredit companies (MCCs) to provide small-sum loans to farmers and small and medium-sized enterprises (SMEs). The programme got a further boost when the CBRC announced provisional rules on transforming MCCs into village and town banks, which, unlike MCCs, would be allowed to take deposits, access the interbank market and conduct other financial services, as long as established financial institutions became majority shareholders of such banks.

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Other Articles on this Issue

• Financial China

  Mini-boom in grassroots finance

  Select financial charts

  Village and town banks – part of the future?

  Rural community credit ratings

• Macro View

  Another big China debate

• The Best of Chinese Commentators

  A-share outlook

  Exchange rate reform?

• Funds Data

  Flows to Taiwan surge

• The Big Call

  Rural China starts to take off

• Consumer China

  A new consumer cohort

  Johnson & Johnson's Dabao – universal winner

  Chongqing Chang'an Automobile

  TCL Corporation - TV giant

  Henan Huaying – recent listing boosts production capacity

  Xtep – popular with discretionary rural consumers

  Anta - growing margins

• Capital Intensive China

  Farmland sales – a quiet revolution

• Guest Column

  Growing trade ties with Latin America

• View issue