'Shadow banking' expands as Hong Kong brokers lend to Chinese businessmen

Wu Changjiang, founder and former chairman of NVC Lighting

Many Hong Kong brokerages have a new and profitable business, despite the economic downturn: lending money to mainland entrepreneurs at high interest rate, sometimes more than 30 per cent.

Monday, 13 May, 2013, 7:58pm 5 comments

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

Ample liquidity to keep loan spreads tight in Asia, says ING

Mark Newman, chief executive of ING Commercial Banking Asia

Lending margins will remain compressed in Asia for the next six to 12 months, said Mark Newman, the chief executive of ING Commercial Banking Asia.

18 Mar 2013 - 2:17am