The Regulators

SSE is directly governed by China Securities Regulatory Commission (CSRC). For the QFII and RQFII scheme, the licenses are granted by CSRC, the quotas are approved by the State Administration of Foreign Exchange (SAFE), and final approvals of special RMB accounts are made by People's Bank of China (PBC). 

CSRC

CSRC

China Securities Regulatory Commission (CSRC), a ministerial-level public institution directly under the State Council, performs a unified regulatory function, according to the relevant laws and regulations, and with the authority by the State Council, over the securities and futures market of China, maintains an orderly securities and futures market order, and ensure a legal operation of the capital market.

PBC

PBC

As the central bank of the world’s second largest economy, The People‘s Bank of China (PBC) plays a crucial role in China's macroeconomic management and performs the following major functions:

  • Drafting and enforcing relevant laws, rules and regulations that are related to fulfilling its functions;
  • Formulating and implementing monetary policy in accordance with law;
  • Issuing the Renminbi and administering its circulation;
  • Regulating financial markets, including the inter-bank lending market, the inter-bank bond market, foreign exchange market and gold market;
  • Preventing and mitigating systemic financial risks to safeguard financial stability;
  • Maintaining the Renminbi exchange rate at adaptive and equilibrium level; Holding and managing the state foreign exchange and gold reserves;
  • Managing the State treasury as fiscal agent, etc.
SAFE

SAFE

The State Administration of Foreign Exchange is a deputy-ministerial-level state administration. The SAFE Head Office consists of eight functional departments, including the General Affairs Department (Policy and Regulation Department), Balance of Payments Department, etc. There are also four institutions affiliated with the SAFE, including the Central Foreign Exchange Business Center, Information Center, etc.

The major functions of SAFE includes:

  • To study and propose policy suggestions on the reform of the foreign exchange administration system, prevention of the balance of payments risks, and promotion of the balance of payments equilibrium; to study and implement policy measures for the gradual advancement of the convertibility of the RMB under the capital account and the cultivation and development of the foreign exchange market; to provide suggestions and a foundation for the People's Bank of China to formulate policy on RMB exchange rate.
  • To participate in the drafting of relevant laws, regulations, and departmental rules on foreign exchange administration, releasing standard documents related to the carrying out of responsibilities.
  • To oversee the statistics and monitoring of the balance of payments and the external credit and debt, releasing relevant information according to regulations and undertaking related work concerning the monitoring of cross-border capital flows, etc.