Bank Loans

Shanghai allows city-owned firm to buy bad loans from local banks

Bank of Shanghai has troubled loans to struggling solar firms. Photo: Mark Ralston

The Shanghai government has given approval to a city-owned investment company to buy non-performing loans from local banks, state media reported yesterday.

Saturday, 8 March, 2014, 4:26am

Liquidity concerns to slow loan growth in Hong Kong

Benjamin Hung expects a bigger income contribution from commercial banking in Hong Kong this year. Photo: Thomas Yau

Bank lending will increase in Hong Kong more slowly this year amid concerns about shrinking liquidity arising from the winding down of the bond-buying programme by the Federal Reserve in the United States, Standard Chartered Bank (Hong Kong) chief executive Benjamin Hung Pi-cheng said.

8 Mar 2014 - 12:53am

Mainlanders use ‘free money’ from Hong Kong banks to earn higher returns at home

When tax bills arrive from the Inland Revenue each year, Hong Kong banks aggressively market loans to customers. Photo: Garrige Ho

Mainland Chinese working in Hong Kong have found a way to use “free money” from local banks to invest in profitable financial products across the border.

They take advantage of cheap personal loans aggressively hawked by banks in an attempt to expand their business. The borrowers quietly turn around and invest the cash on the mainland for higher returns.

27 Feb 2014 - 12:42am 8 comments

Lending adds increasingly less to Chinese GDP, pressuring Premier Li

Observers say the mainland needs to channel more financing to its private enterprises, which are more profitable than their state-owned counterparts. Photo: Reuters

The government's broadest measure of credit rose 58 per cent to a record 6.16 trillion yuan (HK$7.8 trillion) in the January-March period, when gross domestic product gained 7.7 per cent, compared with 8.1 per cent a year earlier. Each US$1 in credit firepower added the equivalent of 17 US cents in GDP, down from 29 cents last year and 83 cents in 2007, when global money markets began to freeze.

31 May 2013 - 3:49am

Fiat raising US$10b for full move on Chrysler

Sergio Marchionne, Fiat and Chrysler chief executive

Fiat is in talks for as much as US$10 billion in financing from a pool of banks to buy the Chrysler stake it doesn't own and refinance the two firms' debt, people familiar with the matter said.

31 May 2013 - 4:41am

Concern raised over China credit growth

Concern raised over mainland credit growth

Total lending from banks and other financial institutions on the mainland was 198 per cent of gross domestic product last year, compared with 125 per cent four years earlier, according to calculations by Chu, the company's Beijing-based head of China financial institutions.

30 May 2013 - 4:33am

£92b of UK commercial property loans face refinancing woes, survey shows

£92b of UK commercial property loans face refinancing woes, survey shows

British commercial real estate investors may be unable to refinance about half of their £198 billion (HK$2.3 trillion) of bank loans as property values fall, a survey by De Montfort University shows.

22 May 2013 - 3:51am

Bad loans swell as China economy slows

Industrial and Commercial Bank of China is one of the banks with ongoing management transition. Photo: Bloomberg

Loans overdue at least three months grew 6.8 per cent to 526.5 billion yuan (HK$665.2 billion) in the first quarter, with the non-performing loan ratio climbing to 0.96 per cent at the end of March from 0.95 per cent last year, the China Banking Regulatory Commission said yesterday.

16 May 2013 - 3:53am

Shadow banking expansion to brake

Shadow lending is key for firms that struggle to get bank loans.

Shadow banking on the mainland is likely to grow at a slower pace, but the sector remains a key source of funds for smaller companies, rating agency Moody's Investors Service said.

14 May 2013 - 4:27am 1 comment

Limits on Philippines property loans may be tightened further

Amando Tetangco, Philippines Central Bank governor. Photo: Bloomberg

The Philippines has cut borrowing costs, banned foreign funds from special deposit accounts and eased rules for outflows, striving to manage an investment influx lured by economic growth exceeding 6 per cent and improved credit ratings.

8 May 2013 - 2:33am

Philippines weighs up property cooling measures

Rising property prices in the Philippines have spurred developers to build more homes. Photo: AFP

The Philippine central bank is reviewing property loans data to determine whether cooling measures are needed to avert a bubble, Deputy Governor Nestor Espenilla said.

1 May 2013 - 3:44am

CBRC tightens grip on bank loans

Many economists have expressed concerns that the mainland's urbanisation initiative would provide a fresh incentive for local governments to get their financing arms to raise funds and invest heavily. Photo: Bloomberg

The mainland's banking regulator has escalated its warnings about lenders' exposure to local government financing vehicles (LGFVs). Loans to these financing vehicles have increased to 18 per cent of gross domestic product as non-bank credit pours into the risky sector.

16 Apr 2013 - 5:50am

Boost to China's money supply brightens outlook

Non-bank lenders are issuing loans hand over fist in China. Photo: Jonathan Wong

New loans extended by mainland banks and non-bank entities grew more than anticipated last month, suggesting there is ample liquidity available to support a recovery in the world's second-largest economy.

12 Apr 2013 - 5:58am

Boao Forum study shows small enterprises lack financial support

The People's Bank of China lowered its lending rate twice as part of the effort to stimulate investment as the economy slowed. Photo: Bloomberg

Lack of financing support from big banks is a major obstacle for small enterprises trying to upgrade production and expand into new markets in today's challenging market conditions, a government survey shows.

7 Apr 2013 - 7:06am

'Too big' ICBC announces slowdown in growth

ICBC, the world's biggest lender by market value, said yesterday that 2012 earnings rose 14.5pc, beating analyst estimates. Photo: Reuters

ICBC, the world's largest bank by market value and assets, plans to slow down asset expansion this year and tolerate a higher bad-loan ratio, underscoring the pressure from stricter capital rules and the anticipation of an economic slowdown.

28 Mar 2013 - 5:52am