China Banking | South China Morning Post
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  • Mar 30, 2015
  • Updated: 10:22pm

China Banking

The real problem behind China's shadow banking

Illustration: Craig Stephens

In China today, the term "shadow banking" has a negative meaning. Over the past year, the China Banking Regulatory Commission has issued numerous policy directives to try to contain its explosive growth.

Friday, 31 May, 2013, 5:35am 1 comment

China interest rate liberalisation to hit banks' interest margin: Ernst & Young

China interest rate liberalisation to hit banks' interest margin: Ernst & Young

The impact of interest rate liberalisation on mainland banks will be reflected in a further compression of their net interest margin in their results this year, Ernst & Young says.

Net interest margin is a profitability measure based on the difference between interest income and interest outlays.

14 May 2013 - 3:32am

Profits rise at mainland China banks but headwinds hit growth

At ICBC, profit growth beat the 10 per cent expected by many analysts, but slowed from the 14.5 per cent rate of all of last year.

The mainland's three largest banks yesterday posted first-quarter growth in net profit ranging from just over 8 per cent to almost 16 per cent year on year. Those increases were smaller than last year's as the lenders felt the effects of the country's economic slowdown.

27 Apr 2013 - 5:45am

Chinese lenders not keen on staff cuts, says adviser

Frederic Lau

Banks are eager to cut costs and find efficiencies and, in some cases, believe that a third of their cost savings can be achieved by laying off staff, said financial advisory group Promontory Financial.

22 Apr 2013 - 2:50am

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

HSBC continues China banking divorce

Analysts believe that HSBC is likely to sell off its 18.7 per cent stake in regional lender Bank of Shanghai later this year. Photo: Reuters

A new media report says global banking giant HSBC is likely to sell-off more of its Chinese assets, continuing an ongoing divorce by top global lenders tired of slow progress in the complex China market.

15 Apr 2013 - 10:55am

China's Big Four banks lend 53pc more in March on investment boom

A surge in mainland bank lending is stoking fears of overinvestment in infrastructure. Photo: AFP

New loans doled out by the mainland's Big Four banks surged 53 per cent last month compared to February, underscoring the ample liquidity available to meet the demand of the nation's investment boom. The four largest lenders extended a total of 331 billion yuan (HK$414 billion) in new loans last month, compared to 216 billion yuan in February and 370 billion yuan in January, the official China Securities Journal reported yesterday, citing unnamed sources.

4 Apr 2013 - 4:01am

Learning to lend beyond the industrial blacklist

Mainland banks have to adapt to interest rate deregulation and controls on lending to some industrial sectors bloated by overcapacity. Photo: Reuters

To whom to lend - this is a tough question for mainland banks. The blacklist of industries subject to lending controls has grown longer, thanks to their rampant expansion in the past few years, fuelled by excessive liquidity after the 2008-09 global financial crisis.

1 Apr 2013 - 4:04am

China watchdog tells banks to check capital pool assets

The banking regulator has tightened checks on wealth management products in efforts to protect consumers. Photo: Bloomberg

The mainland's banking regulator has ordered lenders to complete a probe of the so-called "capital pool" operations of their wealth management products by the end of next month, in an attempt to crack down on the products that pose higher risk to investors because of a lack of transparency.

13 Mar 2013 - 5:50am