Huaxia Bank

In tackling shadow banking, China needs to pick a small target first

The Zhongshan Square Branch of Huaxia Bank in Shenyang, Liaoning Province. Photo: SCMP

China’s “shadow banks” have been one of the hottest topics in the financial press lately. Bank of China chairman Xiao Gang, who according to recent rumours would likely take over as China’s top banking regulator soon, has called for tighter regulation.

Tuesday, 29 January, 2013, 8:57am

Beijing urged to take quick action on shadow banking

With banks offering low interest rates on the mainland, investors are looking for products that produce better yields. Photo: Reuters

Mainland regulators must take quick action to stop the so-called shadow banking problem from snowballing, which has emerged as one of the top threats to the nation's financial stability this year, analysts warn.

29 Jan 2013 - 8:58am

Scandals set off watchdog warnings

A former deputy head of a Shanghai Pudong Development Bank branch in Zhengzhou allegedly used 6.4 billion yuan in depositors' money to fund loan-sharking schemes. Photo: Bloomberg

Shanghai's banking regulator has told lenders to set up telephone hotlines for complaints about staff misconduct in selling wealth management products.

The move is seen as a gesture towards protecting consumer rights after a slew of irregularities in the banking sector.

25 Jan 2013 - 4:56am

Guarantor repays principal on failed Huaxia product

Huaxia Bank in Shanghai. Photo: Reuters

Bankers are breathing easier after more than 90 investors in a failed wealth management product sold at a Huaxia Bank branch in Shanghai were repaid by the product's guarantor.

Two investors who bought the product said Zhongfa Investment Guarantee recently paid them back the principal amounts they had invested after the borrower, Zhongding Wealth Investment Centre, collapsed.

23 Jan 2013 - 3:55am

Banking regulator warns about wealth management products

A failed wealth management product sold at Huaxia Bank has sparked calls for better supervision of bank outlets. Photo: Reuters

The banking regulator has told mainland lenders to "strictly" supervise the design, sale and investment of their wealth management products as it seeks to curb risks from banks' off-balance-sheet businesses.

15 Jan 2013 - 4:15am

Failed wealth fund raises mainland alarm over banks

A failed wealth management product sold at Huaxia Bank has sparked calls for better supervision of bank outlets. Photo: SCMP

Those who complain of an overregulated banking system on the mainland and heavy-handed intervention by the government in lenders' business operations were recently given reason to rethink their conclusions.

The default of a wealth management product issued by a branch of Huaxia Bank in Shanghai's Jiading district exposed the lax management and supervision of banking outlets.

4 Jan 2013 - 2:48am

Lenders told to monitor shadow banking sales

Panicked investors rushed to Huaxia Bank following reports that a wealth management product had stopped making payments.

The mainland's banking regulator has called on lenders to tighten checks on third-party products sold through their branches in a bid to step up regulation of the shadow banking sector.

20 Dec 2012 - 3:19am

Loose credit policy increases risk in China, Nomura warns

Huaxia's case is 'just the beginning'. Photo: Bloomberg

Risks were accumulating in the mainland's trust loans and wealth management products, with more scandals like that of Huaxia Bank expected to emerge next year, a top economist at Nomura Securities said.

14 Dec 2012 - 4:43am

Huaxia scandal spotlights China's Ponzi crisis

Huaxia Bank comes into the spotlight after depositors claim its staff are aggressively selling risky WMPs at a Shanghai branch. Photo: Reuters

It is an all-too-familiar tale. Depositors trust a bank with their cash in the hope their wealth will be managed well, only to find that the money has evaporated at the end of the agreed term.

10 Dec 2012 - 3:32am

Briefs, December 5, 2012

Vanke's sales double from a year earlier

Bankers' pay needs to be curbed further to reflect the risk of a bank failure many years after a bonus has been awarded, the Bank of England said. Measures to date include requiring part of bonuses to be paid in shares over several years, typically three, but Britain's central bank says these do not go far enough. It called for contracts to provide "sufficient incentives for executives to consider the full implications for long-term business performance". 

5 Dec 2012 - 4:58am

Banks' profits surge on loans

Mainland lenders Huaxia Bank and Shanghai Pudong Development Bank posted strong first-quarter earnings growth on increased loans and a boost in interest margin after the central bank raised lending rates twice this year.

1 May 2007 - 12:00am

Loan demand drives up Huaxia profit 13pc

Shares fall 2.73pc as bank boosts capital for more lending

Huaxia Bank, a Beijing-based lender partly owned by Deutsche Bank, says profit rose 13 per cent last year as China's strong economic growth prompted demand for loans.

2 Feb 2007 - 12:00am

Huaxia Bank earnings jump 16pc on bigger loan business

Huaxia Bank, a Beijing-based lender partly owned by Deutsche Bank, said first-half profit surged 16 per cent as it earned more interests on higher demand for loans amid the country's booming economy.

17 Aug 2006 - 12:00am

Huaxia Bank seeks backing for 17b yuan bond sale

Shanghai-listed Huaxia Bank plans to sell 17 billion yuan worth of bonds to fund expansion and improve its capital adequacy ratio.

12 Jul 2006 - 12:00am