Credit Risk

China's boom in wealth management products makes economists fear

A Huaxia Bank branch, like this one in Beijing, came under national spotlight after an employee promoted a WMP. Photo: Bloomberg

The mainland's smaller banks boosted sales of wealth management products (WMPs) to account for more than 85 per cent of the 3.5 trillion yuan (HK$4.34 trillion) of offerings in the first nine months of this year, raising credit risks and deposit costs, Fitch Ratings said.

Thursday, 13 December, 2012, 5:25am

Are bonds overvalued?

Blinded by delight

Our love affair with bonds grows more intense by the day. From investment grade conglomerates in Hong Kong to high-yield energy companies in Kazakhstan, our appetite for credit risk - apparently - is unconditional and indiscriminate. We love them so much, there's not enough to go around. For every dollar issued, there's an average eight dollars of demand.

26 Nov 2012 - 2:17am

Lai See

Ratings agencies have uncanny knack for getting it right

What is it with the ratings agencies that without a hint of shame they belatedly show up weeks after an event and with Delphic-like assurance tell us what's wrong with a company's credit status?

20 Jul 2011 - 12:00am

Fitch downgrades outlook for local-currency default rating

Fitch Ratings has downgraded the mainland's local-currency issuer rating on concerns of elevated real-estate valuations and inflation.

The outlook for China's long-term local-currency issuer default rating has been revised from 'stable' to 'negative', Fitch said yesterday.

14 Apr 2011 - 12:00am

Home prices to stay firm despite curbs, Fitch says

Home prices on the mainland may continue to rise in some cities despite the government's efforts to rein in the property market, said Fitch Ratings, the debt rating agency.

'Meaningful price declines are unlikely in 2011,' said Wang Ying, director of Fitch's Asia-Pacific Corporates team.

18 Feb 2011 - 12:00am

Third of ruling party backbench MPs are credit risks

A minister has inadvertently provided ammunition to the opposition by revealing that one-third of the government's 60 or so backbench MPs have been blacklisted as credit risks by a nationwide database.

26 Jun 2007 - 12:00am

Two banks need vice-presidents for credit team

Now is a good time to work for a bank, particularly in credit, which is a highly active sector whenever the economy is buoyant. Businesses want to expand, and they need funds to make it all happen.

Recruitment firm SuperSearch International is looking for two vice-presidents for credit approval on behalf of its clients.

16 Dec 2006 - 12:00am

S&P reviews developers

Standard & Poor's is reviewing the credit risks facing Hong Kong property companies. John Bailey, a director of the agency's corporate and infrastructure group, said most developers had incurred significant write-downs. Standard & Poor's expects to complete its review by May.

28 Mar 2002 - 12:00am

Moody's highlights plight of small units

Sweeping reform of the mainland's banking system looks set to widen the disparity of credit risk among mainland banking institutions, according to US credit-rating agency Moody's.

'The large Chinese banks may continue to receive strong government support,' it said in an annual report.

'Support to small and medium-sized banks may further be weakened,' it added.

18 Aug 1999 - 12:00am

Bank upbeat on card risk

Wing Hang Bank expects the loan-loss ratio for its credit-card receivables portfolio to remain steady at 4 per cent this year as it expects Hong Kong's economy to start turning around in the second half.

26 Mar 1999 - 12:00am

Credit Suisse develops model to help banks ease credit risks

Credit Suisse First Boston has introduced a mathematical model it believes can supplement banks' systems and help them to more accurately assess credit risks.

4 Jun 1998 - 12:00am

Asian banks hold on to their antediluvian ways

Asian bankers are not used to someone checking over their shoulder. For years, the guiding principle that more lending equalled more profit worked fine. The unwinding of the region's asset boom means attitudes must change.

10 Sep 1997 - 12:00am

Banks must have guide on derivatives trading

Having watched Daiwa and Sumitomo Corp implode, no regulator will want to preside over a similar trading disaster.

The Hong Kong Monetary Authority (HKMA) has investigated the derivative operations of 20 banks over the past 18 months and found some worrying trends in their risk management.

19 Sep 1996 - 12:00am

Economy woes deter investors

FUNDAMENTAL imbalances in the mainland's economy are a deterring factor for foreign investment in China, says a specialist.

31 May 1995 - 12:00am

Mortgage papers may get top ratings

ANTICIPATING the emergence this year of a market in Hong Kong for mortgage-backed securities (MBS), international credit-rating agency Moody's said such papers can secure upper investment-grade ratings if properly structured to give sufficient credit support.

28 Jun 1994 - 12:00am

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