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…
Tagged By banking
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…
Regulator urges China banks to save ailing companies
But it is rare for a government official to acknowledge the practice. The admission could also inflame criticisms of China by trading partners who argue that state-directed bank loans and other subsidies have enabled cheap…
China’s reforms not enough to arrest mounting debt: Moody’s
The comments came two days after Moody’s downgraded China’s sovereign ratings by one notch to A1, saying it expects the financial strength of the world’s second-largest economy to erode in coming years as growth slows…
BRIEF-China Rapid Finance Q1 revenue $10.5 million
May 25 China Rapid Finance Ltd: * China Rapid Finance reports unaudited first quarter 2017 financial results * Q1 revenue $10.5 million versus $13.1 million * Q1 loss per share $1.01 * China Rapid Finance…
Why China’s Growing Debt Load Worries the World
Source: Fitch Ratings, from People’s Bank of China, Bank for International Settlements, Hong Kong Monetary Authority and commercial banks data When it comes to pumping money into a financial system, China has made the Federal…
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