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☆ China refines capital and risk management of commercial banks
▼ + stars: | 2023-02-19 | by ( ) www.cnbc.com time to read: 1 min

China's banking regulator and the central bank plan to adopt a more differentiated regulatory system for assessing commercial banks' capital adequacy and risk management, in a step to better prevent risks in the country's financial system. The China Banking and Insurance Regulatory Commission and the People's Bank of China on Saturday jointly released amended draft rules that they said aimed to help banks "continuously improve the precision of risk measurement and guide banks to better serve the real economy." The draft rules, which bring the banking sector closer to global standards, will divide lenders into three groups based on business scale and risk level.

☆ A 'huge pivot' in China is fueling the emerging markets boom, says Jan van Eck
▼ + stars: | 2023-02-06 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

They're emphasizing growth right now," van Eck said at the Exchange ETF conference in Miami. The iShares MSCI China ETF (MCHI) had a total return of more than 10% this year, through Feb. 3. MCHI YTD mountain This popular China ETF is outperforming in 2023. Van Eck pointed to the outsized growth of major U.S. tech firms as a key reason for that outperformance, but said that era appears to be over. "We've got a decade where you're really taking a risk if you're under invested overseas," van Eck said.

☆ Ant-linked firms' shares rise after news of Jack Ma ceding control; Alibaba jumps
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +4 min

Jan 9 (Reuters) - Shares of listed Chinese companies that count Ant Group as a major shareholder rose on Monday after announcements that Ant founder Jack Ma is giving up control of the fintech giant following an overhaul. Ant indirectly owns stakes ranging from more than 20% to slightly more than 5% in those companies. Ant said over the weekend that founder Jack Ma will give up control of the company. China's domestic A-share market requires companies to wait three years after a change in control to list. read moreLi Nan, professor of Finance at Shanghai Jiaotong University, however said Ant's inherent problems remain after its change of control.

☆ Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares
▼ + stars: | 2023-01-09 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

The gains also come on the back of a broader market rally in Asian shares, thanks to China's reopening. A top Chinese central banker suggested over the weekend Beijing's tech crackdown is coming to a close. The Hang Seng Tech Index — an index that tracks the 30 largest tech companies listed in Hong Kong — closed 3.2% higher. Shares of Hong Kong-listed Chinese tech giants Tencent and NetEase closed 3.6% and 2.6% higher respectively. Hong Kong's Hang Seng Index closed 1.9% higher, the Shanghai Composite Index gained 0.6%, and the Shenzhen Composite Index rose 0.7%.

☆ Chinese manufacturing contracts sharply as COVID infections soar
▼ + stars: | 2022-12-31 | by ( ) www.reuters.com time to read: +4 min

Economists in a Reuters poll had expected the PMI to come in at 48.0. The data offered the first official snapshot of the manufacturing sector after China removed the world's strictest COVID restrictions in early December. Cumulative infections likely reached 18.6 million in December, UK-based health data firm Airfinity estimated. GDP expanded 3% in the first nine months of 2022, versus China's official full-year goal of around 5.5%. The official composite PMI, which combines manufacturing and services, declined to 42.6 from 47.1.

CONTAGION RISKTrust firms were dubbed "shadow banks" because of how they operated outside many of the rules that govern commercial banks. Zhongrong International Trust has been working with local governments, including Qingdao provincial authorities, to source early stage deals in intelligent manufacturing, an executive there said. CCB Trust, Zhongrong International Trust and Avic Trust did not respond to requests for comment. Ping An Trust, Zhongrong International Trust, Everbright Xinglong Trust and Minmetals International Trust have all bought project companies from struggling developers in the last few months, corporate records and company announcements showed. Ping An Trust, Zhongrong International Trust, Everbright Xinglong Trust and Minmetals International Trust did not respond to requests for comment.

HONG KONG/BEIJING, Nov 24 (Reuters) - China's biggest commercial banks have pledged at least $162 billion in fresh credit to property developers, bolstering recent regulatory measures to ease a stifling cash crunch in the sector and triggering a rally in property shares. Three state-owned banks lined up around $131 billion worth of credit lines to developers on Thursday, a day after three other lenders committed $31 billion, responding to Beijing's call for support. The massive, coordinated injection of liquidity into the property sector buoyed the shares of major developers on Thursday. PSBC late on Thursday announced that it would provide a total of 280 billion yuan in financing to Country Garden as well as others. China Construction Bank Corp (601939.SS) signed cooperative agreements with eight property developers, including Vanke, Longfor and Midea, financial media outlet Yicai reported.

☆ Chinese lender BoCom agrees $14 bln credit line with developer Vanke
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Nov 23 (Reuters) - China's Bank of Communications Co Ltd (BoCom) (601328.SS) said on Wednesday it would provide a 100 billion yuan ($13.98 billion) credit line to developer Vanke in the latest sign of support for the embattled property sector. The property sector makes up about a quarter of the economy. Under the agreement, BoCom will likely offer Vanke (000002.SZ) property development loans, mortgage loans and loans for merger and acquisition deals, according to a statement released by the lender. The agreement is part of the bank's efforts to implement 16 measures outlined by Chinese regulators to support the property sector, it said in the statement. China's property sector, once a pillar of growth, has slowed sharply this year due to government efforts to restrict excessive borrowing by developers.

☆ Morning Bid: Fearless?
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +4 min

As bond markets furiously flag a looming recession, stock markets suddenly seem fearless. Wall St's so-called 'fear index' of implied equity volatility (.VIX) fell on Tuesday to its lowest level since August. Put against the deepening inversion of the U.S. 2-10 year Treasury yield curve to its most negative in 22 years, typically a harbinger of recession ahead, the apparent stock market calm is puzzling. Some analysts reckon stock market positioning is already so low and portfolios so underweight equity that demand for downside protection in the options market has waned too. Any hoping for an end to the jump in interest rate rate rises around the world were also disappointed.

☆ China Oct new home prices fall at fastest annual pace in 7 years
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

On an annual basis, new home prices slumped 1.6%, the fastest pace since August 2015, worsening from the 1.5% year-on-year fall in September and marking the sixth month of contraction. New home prices declined 0.3% month-on-month, easing 0.2% in September, according to Reuters calculations based on National Bureau of Statistics (NBS) data. The property sector has struggled with defaults and stalled projects since authorities started to clamp down on excessive leverage in mid-2020, hitting market confidence and weighing on economic activity. Data on Tuesday also pointed to further weakness in the cash-strapped sector, showing real estate investment fell at its fastest pace in 32 months in October. A notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, sources said on Sunday.

☆ Lending activity at China's banks hits lowest level in nearly 5 years despite Beijing's efforts to boost activity and prop up its slowing economy
▼ + stars: | 2022-11-10 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

Institutions made 615 billion yuan in new loans in October, down 2.5 trillion yuan from September, the People's Bank of China said Thursday. Beijing has ramped up policy to encourage lending in recent months, but corporate borrowing still softened in October. Chinese banks and firms lended 615 billion yuan ($84.8 billion) in new loans in October, a steep drop from September's 2.5 trillion yuan. Similarly, aggregate financing slipped from 3.5 trillion yuan to 908 billion yuan in the same stretch, Bloomberg reports, which marks the lowest mark for October since 2019. While results have appeared mixed so far, in recent months Beijing has moved to encourage lending and financing.

☆ China seen partially rolling over policy loans at steady rate - Reuters poll
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +2 min

But some still expect the People's Bank of China (PBOC) to ease banks' reserve requirements next month, to aid an economy hit by the COVID-19 pandemic and property market woes. Most of the 27 participants in the poll conducted this week said they predicted the PBOC will partially renew 50 billion yuan ($6.98 billion) worth of policy loans that mature on Saturday. Traders point out that China's banking system is not short of cash - evidenced by the fact that market rates are lower than policy rates, curbing demand for central bank loans. "We don't expect policy rate cuts until pressure on the currency eases," wrote Zichun Huang, an economist at Capital Economics. Zhou Maohua, analyst at China Everbright Bank, said September's robust credit expansion also made monetary easing less urgent.

☆ When Chinese protesters came up against Xi's security machine
▼ + stars: | 2022-10-13 | by ( Martin Quin Pollard | ) www.reuters.com time to read: +12 min

Handout via REUTERSBEIJING, Oct 13 (Reuters) - Jack Yao, a Chinese Communist Party member, never wanted to be an activist. It offers a glimpse of the lengths some frustrated citizens will go to in taking on the world's most powerful security state. China's Ministry of Public Security, the Henan and Anhui local governments, and police departments in those provinces and Beijing didn't respond to requests for comment for this article. Chinese authorities say social stability is the foundation for a prosperous future and dismiss human rights complaints as Western propaganda and interference in internal affairs. Protesters chanted: "Henan banks, give us back our deposits."

☆ China's smaller banks cut deposit rates to ease margin pressure
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +4 min

Several Chinese city commercial banks and rural commercial lenders have cut their rates on a range of deposits this week, according to statements released on the banks' websites. The smaller lenders followed in the footsteps of some of China's biggest state-owned banks, which implemented rate cuts earlier this month. Peiqian Liu, China economist at Natwest Markets, noted the commercial banks' deposit rate cuts are part of the monetary policy transmission mechanism after the central bank cut key policy rates in August. "This rate cut by commercial banks will help improve the profit margin slightly and is technically opening up more space for further (benchmark lending) rate cuts." Four of the five of China’s largest banks, except for Bank of China, reported falling net interest margins (NIMs) in the second quarter.

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