Hey Fintech Friends,

Hope you're having a good week!

It’s our weekly “Let’s talk about China” time: China's economic outlook is facing challenges even as Beijing doubled down on stimulus to support the sputtering economy. Domestically, consumer demand is weakening, as evidenced by the recent slowdown in the consumer price index (CPI). Meanwhile, the global manufacturing landscape is shifting, with some companies relocating production to Southeast Asia, anticipating Trump’s government would increase tariffs. As China navigates these challenges, continue following us to see how policymakers respond to sustain economic growth.

Alrighty, more news in the below. Enjoy your read, and as always, drop me an email if you have any comment: ning@thisweekinfintech.com. 

Licensing & Regulations 

• Deposit Rate Cuts: Chinese regulators are pushing banks to lower the rates on deposits from other financial institutions. This aims to free up funds for lending and boost the economy.
• New Credit Rating Agency: Ant Group-backed Qiantang Credit Rating finally received a personal credit reporting license after waiting for three years. This makes it the third agency authorized to collect individual credit data in China.

Financing, Investment & Acquisition 

• BNP Paribas Trims China Workforce: BNP Paribas is joining the trend of global banks downsizing in China. They've cut a dozen jobs across mainland China and Hong Kong due to a slowdown in dealmaking activity.

Product & Partnership Launches

• China's e-CNY Hard Wallet: The People's Bank of China (PBOC) launched a new physical wallet for its digital yuan (e-CNY). This credit-card-sized device displays QR codes and transaction details, aiming to improve accessibility for seniors, students, and foreign visitors. AND the PBOC hopes this can expand adoption of the e-CNY.
• PhotonPay Partners with Mastercard: PhotonPay is now a Mastercard issuer in Hong Kong.
• Visa Facilitates APAC Cross-Border QR Payments: Visa partners with several QR payment providers in Asia Pacific, including China's Lakala, to enable seamless cross-border QR payments using digital wallets.
• ANEXT Bank Targets SMEs: Ant Group-backed ANEXT Bank in Singapore partners with Schroders to offer investment funds specifically designed for micro, small, and medium enterprises (MSMEs).
• Alipay+ Expands to Nepal: Alipay+ is set to launch its services in Nepal soon.

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