SHANGHAI The banker at the other end of the phone line was furious, recalled Shanghai lawyer Wang Chaoyu. A pile of steel pledged as collateral for a loan of almost $3 million from his bank,…
Tagged By banking
China factory PMI growth holds up in May, steel sector activity speeds up
BEIJING China manufacturing sector grew faster than expected in May as activity in the steel industry rebounded sharply, an official survey showed on Wednesday, allaying concerns of slowing economic momentum as Beijing cracks down on…
China’s real credit risk lurks in shadow finance
But financial markets greeted China’s downgrade last week by Moody’s, the credit rating agency, with their version of a nonchalant shrug. Chinese domestic bond prices remained steady and Hong Kong’s main stock index actually rose…
China’s shadow banking crackdown shakes markets
A crackdown on China’s $9.4tn shadow banking business is hitting bank share prices and rattling bond markets. The country’s new top banking regulator has already taken several shots at stemming the rapid growth of off-balance-sheet…
New trends in China’s banking industry
In 2016, the Chinese central bank launched the Macro Prudential Assessment (MPA) regime and began to assess the overall financial health of banks. [Photo/Xinhua] China’s rapid technological progress has brought about a revolution in the…
The other credit risk to watch in China: Fintech-fuelled debt
China’s government has copped what Scott Morrison is so desperate to avoid: a credit rating downgrade. But in the discussion about Moody’s surprise move last week to cut its rating for our biggest trading partner,…
China mulls new yuan pricing formula to raise stability
China plans to change a formula for forming the yuan-U.S. dollar central parity rate, a move to ensure stable exchange rates at a time when global financial markets remains beset by instability. Under China’s market-based,…
The Lesson From Moody’s Overdue Downgrade Of China’s Debt
Moody’s has finally recognized the dangers of instability in China’s financial system and economy. This past week, the ratings agency downgraded China’s debt one notch from Aa3 to A1. Although that might not seem like…
China’s banking sector is facing new headwinds as asset growth cools
For the past few years, Chinese banks boosted their assets at a rapid clip, mainly by disguising loans as investments. But as the expansion has slowed considerably in recent months, industry insiders are beginning to…
The Next Global Financial Crisis: A Chinese Sovereign Debt Default?
Moody’s recent downgrading of China’s sovereign debt rating triggered waves of reaction in both financial markets and policy circles. But like many other rating adjustments it looks more like a lagging, rather than a leading,…
China’s tighter financial regulations seen having minimal impact on economy
Chinese financial regulators have moved towards tighter oversight since March. The People’s Bank of China (PBOC) has been squeezing interbank liquidity and has pushed for economic deleveraging. The China Banking Regulatory Commission (CBRC) has issued…
China central bank denies reports it told banks to deposit dollars
BEIJING China’s central bank has not adopted any measures requiring commercial banks to deposit dollars with it, the People’s Bank of China (PBOC) said on Friday. Reports that the central bank had ordered such deposits…
China Seeks A Balance Between Financial Reform And Stability, But Is It Possible?
In a swift move last week, China’s central bank injected 170 billion RMB ($24.7 billion) into the financial system through money market operations in order to stabilize financial markets. The new head of the China…
