How Chinese banks plan to weather regulatory uncertainty

Financial experts gathered last week for FinanceAsia’s China Fixed Income Summit in Hong Kong.

The discussion was dominated by debate over unpredictable regulatory shifts, the coming of virtual banking and outsized demand for funds from large Chinese lenders as they seek to meet global capital adequacy requirements.

Virtual banks

With a wide range of innovative offerings and fewer expenses, the sudden arrival of virtual banking is expected to disrupt the traditional financial services industry in Hong Kong.

“The Hong Kong Monetary Authority HKMA hasn’t issued a banking license for more than 40 years and then all of a sudden...