https://www.scmp.com/rss/21093/feed The Bank of China is one of Hong Kong's biggest banks. It is also one of China's four state-owned commercial banks; the other three are the Industrial and Commercial Bank of China, China Construction Bank, and the Agricultural Bank of China. The Bank of China was founded in 1912 to replace the Government Bank of Imperial China, and is the oldest bank in the country. Its headquarters are located in Hong Kong. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Enoch Yiu Enoch Yiu High-dividend yielding Hong Kong and mainland banking stocks are likely to attract investors looking to park some of the HK$106.16 billion (US$13.6 billion) windfall from the Hang Seng Bank privatisation deal, according to analysts. They tipped Bank of China (Hong Kong) and HSBC to be among the biggest beneficiaries these investors seek as dividend-paying replacements. About 15,000 Hang Seng Bank shareholders are expected to receive their payout cheques by February 4 in exchange for their... https://www.scmp.com/business/article/3339361/which-stocks-will-hang-seng-bank-shareholders-consider-their-us14-billion-windfall?utm_source=rss_feed https://www.scmp.com/business/article/3339361/which-stocks-will-hang-seng-bank-shareholders-consider-their-us14-billion-windfall?utm_source=rss_feed Sun, 11 Jan 2026 23:30:12 +0000 SCMP Editorial SCMP Editorial Barely a month after Australia’s Labor Prime Minister Anthony Albanese visited China to improve relations put on ice by his Liberal predecessor, the Bank of China announced it was leading the country’s largest syndicated, yuan-denominated loan to a foreign firm. Perth-based Fortescue is the world’s fourth-largest iron ore producer and China has long been its best customer, so the loan, worth a record 14.2 billion yuan (US$1.98 billion), makes good sense. The diplomatic thaw is bearing fruit. But... https://www.scmp.com/opinion/comment/article/3322499/record-yuan-loan-australian-miner-makes-good-sense?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3322499/record-yuan-loan-australian-miner-makes-good-sense?utm_source=rss_feed Wed, 20 Aug 2025 22:45:06 +0000 Xinyi Wu Xinyi Wu China has passed another milestone in its efforts to promote the global use of its currency, with the Australian metals giant Fortescue agreeing to borrow a record 14.2 billion yuan (US$1.98 billion) in a syndicated loan agreement arranged by one of China’s biggest state-owned banks. The deal is the first ever offshore yuan syndicated loan to an Australian company and the largest ever to a non-Chinese firm, lead arranger Bank of China said in a statement on Tuesday. Fortescue – the world’s... https://www.scmp.com/economy/china-economy/article/3321546/chinas-push-promote-its-currency-accelerates-landmark-fortescue-loan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321546/chinas-push-promote-its-currency-accelerates-landmark-fortescue-loan?utm_source=rss_feed Tue, 12 Aug 2025 07:00:08 +0000 Enoch Yiu Enoch Yiu China’s financial authorities have granted Hong Kong residents a new daily remittance quota for the yuan, as a cross-border electronic transactions service prepares to kick off, linking 315 million users between the city and the mainland. Starting from noon on Sunday, the 17 million registered users of Hong Kong’s Faster Payment System (FPS) will be able to remit up to HK$10,000 (US$1,282) per day for each bank account to 298 million users on the mainland’s Internet Banking Payment System (IBPS)... https://www.scmp.com/business/article/3315267/china-grants-hong-kong-new-yuan-quota-payment-connect-kicks-315-million-users?utm_source=rss_feed https://www.scmp.com/business/article/3315267/china-grants-hong-kong-new-yuan-quota-payment-connect-kicks-315-million-users?utm_source=rss_feed Fri, 20 Jun 2025 10:59:20 +0000 Yulu Ao,Enoch Yiu Yulu Ao,Enoch Yiu Hong Kong is taking another big step to strengthen financial-market linkages with the Middle East with the launch of Asia’s first exchange-traded fund (ETF) tracking Saudi Arabia’s Islamic government bonds, or sukuk. The ETF, called Premia BOCHK Saudi Arabia Government Sukuk ETF, started trading on the Hong Kong stock exchange on Thursday, giving local investors access to the world’s second-largest market for sharia-compliant debt securities. The ETF trades in Hong Kong dollars under code 3478... https://www.scmp.com/business/china-business/article/3312217/hong-kong-deepens-ties-middle-east-saudi-sukuk-etfs-bullish-debut?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3312217/hong-kong-deepens-ties-middle-east-saudi-sukuk-etfs-bullish-debut?utm_source=rss_feed Thu, 29 May 2025 03:16:08 +0000 Zhao Ziwen,Bochen Han Zhao Ziwen,Bochen Han A China General Chamber of Commerce – USA survey released Monday showed half of Chinese companies operating in the United States plan to shift emphasis away from investments in the country in light of Trump administration tariff policies. The business group conducted the survey of almost 100 Chinese enterprises operating in the US in March and April, finishing shortly before US President Donald Trump’s so-called “reciprocal” tariffs on Chinese products of 145 per cent and Beijing’s retaliatory... https://www.scmp.com/news/china/money-wealth/article/3310074/trump-tariffs-seen-lowering-chinese-firms-us-investment-plans?utm_source=rss_feed https://www.scmp.com/news/china/money-wealth/article/3310074/trump-tariffs-seen-lowering-chinese-firms-us-investment-plans?utm_source=rss_feed Mon, 12 May 2025 22:20:06 +0000 Bloomberg Bloomberg The Shanghai Gold Exchange plans to expand its warehouse network to Hong Kong, helping to raise the profile of its yuan-denominated products, including for the precious metal, beyond mainland China. The new vault will be operated by a subsidiary of Bank of China, according to people familiar with the matter, who requested not to be identified as the information is private. The timeline for the move is not yet clear, they added. At present, there are two such warehouses in Shanghai, plus a third... https://www.scmp.com/business/commodities/article/3309265/shanghai-gold-exchange-eyes-hong-kong-vault-promote-yuan-denominated-products?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3309265/shanghai-gold-exchange-eyes-hong-kong-vault-promote-yuan-denominated-products?utm_source=rss_feed Tue, 06 May 2025 09:05:11 +0000 Aileen Chuang Aileen Chuang Hong Kong stocks climbed on Wednesday as positive news from some index heavyweights, including AIA and Xiaomi, offset concerns about weakness in China’s manufacturing sector amid a tariff conflict with the US. The Hang Seng Index rose 0.5 per cent to 22,119.41, the biggest gain in five days. The Hang Seng Tech Index advanced 1.4 per cent. On the mainland, the CSI 300 Index eased 0.1 per cent and the Shanghai Composite Index lost 0.2 per cent. Onshore markets will be closed for the Labour Day... https://www.scmp.com/business/markets/article/3308452/hong-kong-stocks-mirror-contraction-china-pmi-data?utm_source=rss_feed https://www.scmp.com/business/markets/article/3308452/hong-kong-stocks-mirror-contraction-china-pmi-data?utm_source=rss_feed Wed, 30 Apr 2025 02:29:10 +0000 Bloomberg Bloomberg Chinese banks have begun raising consumer loan interest rates just about two weeks after cutting them to record lows, underscoring the challenges of lowering funding costs amid sustained pressure on margins. Lenders including China Merchants Bank and Bank of Jiangsu, which previously engaged in a price war by offering consumer loan rates as low as 2.58 per cent annually, have now adjusted their rates to no less than 3 per cent, according to online advertisements. Major banks such as Industrial... https://www.scmp.com/business/banking-finance/article/3304592/chinese-banks-increase-consumer-loan-rates-record-low-amid-pressure-margins?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3304592/chinese-banks-increase-consumer-loan-rates-record-low-amid-pressure-margins?utm_source=rss_feed Mon, 31 Mar 2025 09:36:52 +0000 Zhang Shidong Zhang Shidong Hong Kong stocks slid to a four-week low on Monday as investor worries about US President Donald Trump’s reciprocal tariffs outweighed the positive impacts of an official report showing an expansion in China’s manufacturing industry and Beijing’s effort to recapitalise the banking sector. The Hang Seng Index fell 1.3 per cent to 23,119.58 at the close, a level not seen since March 4. The Hang Seng Tech Index dropped 2 per cent. On the mainland, the CSI 300 Index sank 0.7 per cent, and the... https://www.scmp.com/business/china-business/article/3304510/hong-kong-stocks-retreat-4-month-low-trumps-reciprocal-tariffs-draw-near?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3304510/hong-kong-stocks-retreat-4-month-low-trumps-reciprocal-tariffs-draw-near?utm_source=rss_feed Mon, 31 Mar 2025 02:26:58 +0000 Zhang Shidong Zhang Shidong Four of China’s biggest state-owned banks plan to raise a combined 520 billion yuan (US$71.6 billion) from new share sales to government-backed shareholders to replenish capital, as Beijing cranks up efforts to recapitalise the 380 trillion yuan banking industry amid a slowdown in growth. China Construction Bank (CCB) plans to mop up as much as 105 billion yuan, Bank of China about 165 billion yuan, Bank of Communications (Bocom) at least 120 billion yuan and Postal Savings Bank of China about... https://www.scmp.com/business/china-business/article/3304486/chinas-4-top-state-owned-banks-raise-us72-billion-stock-sales-boost-capital?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3304486/chinas-4-top-state-owned-banks-raise-us72-billion-stock-sales-boost-capital?utm_source=rss_feed Sun, 30 Mar 2025 13:52:23 +0000 Cao Li Cao Li Chinese banks are reporting higher profits and smaller bad debts, helped by the central bank’s flexibility on how lenders provide a cushion for their non-performing loans (NPLs), as well as a capital replenishment plan from the government. All six of China’s state-owned commercial banks posted moderate growth in net profit last year, while their NPL ratios – a key indicator of asset quality and credit risk – declined slightly. Net interest margins (NIMs), which represent the difference between... https://www.scmp.com/business/banking-finance/article/3304329/chinese-state-banks-2024-profits-rise-and-bad-loans-dwindle-even-margins-narrow?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3304329/chinese-state-banks-2024-profits-rise-and-bad-loans-dwindle-even-margins-narrow?utm_source=rss_feed Fri, 28 Mar 2025 10:30:43 +0000 Africa’s top lenders are opening branches in major Chinese cities in a race to tap into growing trade ties between China and Africa amid Beijing’s push for yuan-based transactions. This is despite threats from the US, where president-elect Donald Trump has said he will impose 100 per cent tariffs on Brics countries that pursue de-dollarisation. In October, The Access Bank UK, a subsidiary of Nigeria’s Access Bank, opened a Hong Kong branch to “foster stronger economic ties between Asia and... https://www.scmp.com/news/china/diplomacy/article/3289630/african-banks-set-shop-china-beijing-pushes-yuan-eclipse-us-dollar?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3289630/african-banks-set-shop-china-beijing-pushes-yuan-eclipse-us-dollar?utm_source=rss_feed Sat, 07 Dec 2024 12:00:08 +0000 Zhou Xin,Enoch Yiu Zhou Xin,Enoch Yiu China’s Vice-Premier He Lifeng, the government’s top man on the financial industry, is scheduled to lead a delegation of senior bankers and officials to Hong Kong next week for the third annual conference of global financiers, according to sources familiar with the plans. He is expected to lead a contingent comprising the heads of China’s state banks, including Bank of China’s chairman, Ge Haijiao, to the 2024 Global Financial Leaders Investment Summit organised by the Hong Kong Monetary... https://www.scmp.com/business/banking-finance/article/3286118/chinas-vice-premier-he-lifeng-lead-financiers-hong-kongs-bankers-summit-next-week?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3286118/chinas-vice-premier-he-lifeng-lead-financiers-hong-kongs-bankers-summit-next-week?utm_source=rss_feed Mon, 11 Nov 2024 14:01:16 +0000 Mia Castagnone Mia Castagnone The liberalisation of China’s financial sector will remain attractive for foreign institutions, as the sector plays a pivotal role in the country’s broader strategy of opening up, according to the chairman of Bank of China (BOC). “China is opening up and will continue to have more favourable conditions and opportunities for foreign financial institutions,” Ge Haijiao said in Beijing on Tuesday. The finance sector is the “life blood” of China’s economy, he added. Ge was speaking at Sibos, a... https://www.scmp.com/business/banking-finance/article/3283411/chinas-financial-reforms-invitation-foreign-firms-boost-growth-boc-chairman?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3283411/chinas-financial-reforms-invitation-foreign-firms-boost-growth-boc-chairman?utm_source=rss_feed Tue, 22 Oct 2024 11:18:44 +0000 Aileen Chuang,Enoch Yiu Aileen Chuang,Enoch Yiu Hong Kong’s de facto central bank plans to turn its annual bankers’ summit into an “anchor event” for the world’s financial industry in the second half of every year, as seats for the 2024 edition have been fully reserved a month ahead of its scheduled commencement. More than 100 chairpersons and CEOs of global banks have confirmed their attendance at the third edition of the Global Financial Leaders’ Investment Summit from November 18 to 20, according to the Hong Kong Monetary Authority (HKMA).... https://www.scmp.com/business/banking-finance/article/3283166/ceos-citi-morgan-stanley-bnp-among-300-bankers-attend-hong-kongs-2024-summit?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3283166/ceos-citi-morgan-stanley-bnp-among-300-bankers-attend-hong-kongs-2024-summit?utm_source=rss_feed Mon, 21 Oct 2024 03:40:59 +0000 China’s economy is undergoing a profound transformation, marked by a series of reforms and stimulus measures aimed at stabilising growth and charting a course for sustainable development. While these initiatives represent a significant step forward, they are just the opening moves in a more complex and nuanced economic strategy. The path to sustainable growth in China requires a multifaceted approach that extends far beyond immediate fiscal and monetary interventions. It must address fundamental... https://www.scmp.com/opinion/china-opinion/article/3281644/chinas-stimulus-measures-just-first-step-economic-reform-journey?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3281644/chinas-stimulus-measures-just-first-step-economic-reform-journey?utm_source=rss_feed Thu, 10 Oct 2024 14:30:09 +0000 Bloomberg,Yuke Xie Bloomberg,Yuke Xie China is considering injecting up to 1 trillion yuan (US$142 billion) of capital into its biggest state banks to increase their capacity to support the struggling economy, according to people familiar with the matter. China’s six largest state-owned lenders – the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, Bank of Communications, and Postal Savings Bank of China – could each receive an injection of 100 billion yuan, a source... https://www.scmp.com/business/china-business/article/3280008/china-weighs-injecting-us142-billion-capital-top-banks?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3280008/china-weighs-injecting-us142-billion-capital-top-banks?utm_source=rss_feed Thu, 26 Sep 2024 04:25:16 +0000 Yuke Xie Yuke Xie Beijing’s encouragement for large commercial lenders to increase investments in unlisted companies is a significant move in the broader effort to support the country’s struggling start-ups, analysts said, though they wondered whether the big banks were ready to participate. Chinese authorities are now allowing the financial asset-investment arms of major commercial banks to increase their allocations to private companies, Li Yunze, director of the National Administration of Financial Regulation... https://www.scmp.com/business/banking-finance/article/3279859/beijing-encourages-investment-struggling-start-ups-are-big-banks-ready?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3279859/beijing-encourages-investment-struggling-start-ups-are-big-banks-ready?utm_source=rss_feed Wed, 25 Sep 2024 06:00:12 +0000 Yuke Xie Yuke Xie China’s largest state-owned banks are expected to struggle with thinner margins later this year and into 2025, according to analysts, after these lenders this week reported profit declines amid Beijing’s call to extend a lifeline to the troubled property sector and support the economy. The Industrial and Commercial Bank of China, the world’s biggest bank by assets, on Friday reported a net profit of 170.5 billion yuan (US$24 billion) for the six months ended June 30, down 1.8 per cent compared... https://www.scmp.com/business/banking-finance/article/3276672/chinas-state-owned-banks-face-thinner-margins-amid-beijings-call-support-economy?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3276672/chinas-state-owned-banks-face-thinner-margins-amid-beijings-call-support-economy?utm_source=rss_feed Sun, 01 Sep 2024 05:00:09 +0000 Since the middle of last year, it was evident that the Chinese economy faced two major risks. The first was that deflationary expectations would depress private spending and investment. In a deflationary environment, households are less likely to spend on items financed by borrowing, while firms cut back on hiring and investing in anticipation of wages and other costs falling. This keeps credit demand weak and renders lower interest rates less effective in boosting domestic demand. The second... https://www.scmp.com/opinion/china-opinion/article/3275640/restore-consumer-confidence-china-must-save-property-sector?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3275640/restore-consumer-confidence-china-must-save-property-sector?utm_source=rss_feed Tue, 27 Aug 2024 01:30:08 +0000 Yuke Xie Yuke Xie Liu Jin has resigned as the vice-chairman and president of China’s largest global bank, in a surprise move five months after his reappointment to the lender’s top executive job. Liu resigned for “personal reasons” from Bank of China, effective August 25, the state-owned bank said in a Sunday filing to the stock exchange, without elaborating. The bank’s Beijing spokespeople declined to comment. The move came as a surprise as Liu, born in 1967, has yet to reach the official retirement age of 60... https://www.scmp.com/business/banking-finance/article/3275889/liu-jin-resigns-bank-chinas-president-undisclosed-personal-reason?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3275889/liu-jin-resigns-bank-chinas-president-undisclosed-personal-reason?utm_source=rss_feed Mon, 26 Aug 2024 05:44:48 +0000 Three Asean countries and Hong Kong have agreed to consider easing visitor entry requirements in both directions, Chief Executive John Lee Ka-chiu has said as he concluded a visit to Laos, Cambodia and Vietnam, adding the city might set up new economic trade offices in the region. The city leader said his “fruitful” six-day trip, which included more than 30 events and ended in Vietnam’s Ho Chi Minh City on Friday, not only resulted in 55 cooperation agreements but also promoted people-to-people... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3273035/hong-kong-explore-easing-visitor-rules-3-asean-countries-city-leader-john-lee-says?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3273035/hong-kong-explore-easing-visitor-rules-3-asean-countries-city-leader-john-lee-says?utm_source=rss_feed Fri, 02 Aug 2024 15:46:08 +0000 Yuke Xie Yuke Xie Saudi Arabia’s sovereign Public Investment Fund (PIF) and six of China’s top financial institutions have signed investment agreements totalling US$50 billion in a move that significantly strengthens financial and business ties between the two countries. The amount represents 1.5 times China’s total foreign direct investment inflow in 2023. The agreements are with Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB), China Export and Credit Insurance Corporation... https://www.scmp.com/business/banking-finance/article/3273010/saudi-arabia-wealth-fund-signs-us50b-agreements-6-top-chinese-institutions?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3273010/saudi-arabia-wealth-fund-signs-us50b-agreements-6-top-chinese-institutions?utm_source=rss_feed Fri, 02 Aug 2024 12:07:22 +0000 Two of China’s largest banks unveiled plans to sell total loss-absorbing capacity (TLAC) bonds this week, as Chinese lenders draw up plans to sell these newly introduced securities to strengthen their balance sheets and meet the central bank’s solvency regulations. State-owned lender the Industrial and Commercial Bank of China (ICBC), the world’s largest bank by assets, said it will raise 30 billion yuan (US$4.2 billion) and Bank of China (BOC), another government-owned bank, said it will borrow... https://www.scmp.com/business/banking-finance/article/3262492/chinas-banks-seen-launching-us60-billion-loss-absorbing-bonds-align-pbocs-guidelines?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3262492/chinas-banks-seen-launching-us60-billion-loss-absorbing-bonds-align-pbocs-guidelines?utm_source=rss_feed Mon, 13 May 2024 08:58:23 +0000 Fitch Ratings has lowered its outlook for China’s state-owned banks from stable to negative a week after it cut its projection for the country’s sovereign credit rating, reflecting pessimism in the world’s second largest economy and concerns over Beijing’s capacity to support its biggest lenders. The downgrade in the ratings outlook of China’s “big six” state-owned banks, including the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China (BOC),... https://www.scmp.com/business/article/3259217/fitch-cuts-outlook-chinas-state-owned-banks-stable-negative-citing-beijings-limited-capacity-support?utm_source=rss_feed https://www.scmp.com/business/article/3259217/fitch-cuts-outlook-chinas-state-owned-banks-stable-negative-citing-beijings-limited-capacity-support?utm_source=rss_feed Tue, 16 Apr 2024 11:00:37 +0000 China Construction Bank (CCB) expects Beijing to introduce more policy support to bolster the economy, even as the nation’s major state-owned lenders continue to face pressure to boost profits amid the prospect of benchmark rates decreasing further. “China’s economy is showing signs of recovery, but there is room for more policy support, and big banks need to continue to support the real economy,” CCB chief financial officer Sheng Liurong said on Tuesday during the bank’s latest financial... https://www.scmp.com/business/banking-finance/article/3257609/china-construction-bank-sees-more-policy-support-beijing-despite-pressure-state-owned-lenders-boost?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3257609/china-construction-bank-sees-more-policy-support-beijing-despite-pressure-state-owned-lenders-boost?utm_source=rss_feed Tue, 02 Apr 2024 12:45:14 +0000 The Agricultural Bank of China (ABC), China Construction Bank (CCB), Bank of China (BOC) and Postal Savings Bank of China (PSBC) – four of China’s largest state-owned lenders – posted steady earnings growth for 2023 even as their margins faced persistent downwards pressure amid government calls to slash rates and inject liquidity into the country’s slumping property sector. ABC, China’s third-largest bank by assets, saw its net profit jump 4.2 per cent to 269.8 billion yuan (US$37.3 billion), it... https://www.scmp.com/business/banking-finance/article/3257140/agricultural-bank-china-china-construction-bank-boc-and-postal-savings-bank-china-post-earnings?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3257140/agricultural-bank-china-china-construction-bank-boc-and-postal-savings-bank-china-post-earnings?utm_source=rss_feed Thu, 28 Mar 2024 14:39:07 +0000 Hong Kong’s three note-issuing banks – HSBC, Standard Chartered, and Bank of China (Hong Kong) – announced on Thursday that they will keep their lending and deposit rates unchanged after the city’s monetary authority followed suit with the US Federal Reserve in keeping interest rates at their current level. The status quo stance means businesses and mortgage borrowers will have to wait until at least later this year for interest-rate relief as the economy struggles to crawl out of a stubborn... https://www.scmp.com/business/article/3256174/hsbc-leaves-prime-lending-and-deposit-rates-unchanged-borrowers-eye-interest-relief-later-year?utm_source=rss_feed https://www.scmp.com/business/article/3256174/hsbc-leaves-prime-lending-and-deposit-rates-unchanged-borrowers-eye-interest-relief-later-year?utm_source=rss_feed Thu, 21 Mar 2024 04:21:52 +0000 The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) announced several policy steps to deepen two-way financial cooperation. Two of these measures specifically focus on strengthening the bond market, the biggest outside the US. One pertains to expanding the list of eligible collateral in the RMB Liquidity Facility in Hong Kong to include yuan-denominated bonds sold by the Chinese government and the nation’s policy banks, effective February 26. The second involves wider... https://www.scmp.com/business/banking-finance/article/3253178/chinas-repo-market-what-changes-are-store-banks-global-bond-investors?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3253178/chinas-repo-market-what-changes-are-store-banks-global-bond-investors?utm_source=rss_feed Mon, 26 Feb 2024 03:06:51 +0000 The Year of the Dragon is under way, and the mythical, fire-breathing creature is everywhere to be seen. In fact, images of the legendary beast are more ubiquitous than any of its fellow zodiac animals are when their turn comes round on the Chinese calendar. In particular, lai see envelopes – red paper packets filled with “lucky money” – are abundant with pictures of dragons, as financial companies from UBS to Julius Baer, and KGI Asia make the most of the creature’s popularity with the... https://www.scmp.com/business/banking-finance/article/3251660/year-dragon-most-popular-chinese-zodiac-signs-dominates-corporate-lai-see-packets-again?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3251660/year-dragon-most-popular-chinese-zodiac-signs-dominates-corporate-lai-see-packets-again?utm_source=rss_feed Sun, 11 Feb 2024 06:30:11 +0000 Hong Kong’s banks said they would keep their prime rates unchanged in line with the city’s monetary authority, offering a breather to businesses and mortgage borrowers as the economy struggles to crawl out of a stubborn slump. HSBC, its Hang Seng Bank unit and Bank of China (Hong Kong) kept their prime lending rate unchanged at 5.875 per cent, paying 0.875 per cent per annum for deposits. Standard Chartered kept the interest it charges its best customers at 6.125 per cent, paying 0.875 per cent... https://www.scmp.com/business/banking-finance/article/3250498/hong-kong-holds-base-rate-steady-after-us-feds-unanimous-vote-keep-options-open-dashed-optimism?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3250498/hong-kong-holds-base-rate-steady-after-us-feds-unanimous-vote-keep-options-open-dashed-optimism?utm_source=rss_feed Wed, 31 Jan 2024 23:10:19 +0000 China’s largest state-owned banks are lowering their deposit rates for the third time in 2023, in their latest effort to ease the pressure on their net interest margins (NIM) and to improve profitability. The NIM is the amount of money that a bank earns in interest on loans relative to the amount it pays on deposits. It is an important gauge of a bank’s profitability. The Industrial and Commercial Bank of China, China Construction Bank, Agriculture Bank of China, Bank of China and Bank of... https://www.scmp.com/business/banking-finance/article/3246051/chinas-biggest-banks-lower-deposit-rates-third-time-2023-eye-improving-profitability?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3246051/chinas-biggest-banks-lower-deposit-rates-third-time-2023-eye-improving-profitability?utm_source=rss_feed Fri, 22 Dec 2023 11:30:14 +0000 China has been expanding the use of its sovereign digital currency in cross-border businesses, with the state-owned Bank of China completing the first cross-border settlement for precious metals trading. The bank’s Shanghai branch transferred 100 million yuan (US$14 million) in cash from an overseas buyer, depositing the funds as digital yuan into an account under the Shanghai Gold Exchange, according to a Wednesday report by state-run newspaper Shanghai Securities News, citing a representative... https://www.scmp.com/tech/policy/article/3245881/china-digital-currency-bank-china-completes-cross-border-settlement-precious-metals-trading-using-e?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3245881/china-digital-currency-bank-china-completes-cross-border-settlement-precious-metals-trading-using-e?utm_source=rss_feed Thu, 21 Dec 2023 11:00:08 +0000 A Chinese banker has been sentenced to life in prison in the country’s biggest-ever corruption case arising from the banking sector. Xu Guojun, whose case involved more than US$483 million between 1993 and 2001, was convicted on charges of embezzlement and misappropriation of public funds by the Jiangmen Intermediate People’s Court in Guangdong province on Wednesday. Ex-Xinjiang official who led purge now under anti-corruption investigation Xu, a former head of a Bank of China branch in Kaiping,... https://www.scmp.com/news/china/politics/article/3244990/chinese-banker-jailed-life-us483-million-corruption-case-largest-ever-countrys-history?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3244990/chinese-banker-jailed-life-us483-million-corruption-case-largest-ever-countrys-history?utm_source=rss_feed Thu, 14 Dec 2023 03:58:23 +0000 Livi Bank, a virtual bank backed by the Bank of China (Hong Kong), will continue to expand lending to small and medium-sized enterprises (SMEs) as it views the segment as a future growth engine after strong growth this year, according to CEO David Sun. “There is strong demand from SMEs for banking services and lending,” Sun said in a media briefing recently. “This will be the focus of expansion at Livi Bank in coming years.” Livi, which is among eight virtual lenders that started operations in... https://www.scmp.com/business/banking-finance/article/3244450/bochk-backed-virtual-lender-livi-eyes-further-sme-business-growth-after-strong-2023?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3244450/bochk-backed-virtual-lender-livi-eyes-further-sme-business-growth-after-strong-2023?utm_source=rss_feed Sun, 10 Dec 2023 23:30:15 +0000 China’s most internationalised state bank on Tuesday opened its first branch in Saudi Arabia in a move to expand the use of yuan amid a growing number of economic deals between the two countries. Bank of China (BOC), one of China’s four biggest state-owned banks, opened its branch in Riyadh, the capital city of the oil-rich Middle Eastern country, more than two years after being given approval by the Saudi Arabian government. The branch has more than 20 staff, with a majority hired locally – a... https://www.scmp.com/economy/global-economy/article/3233565/china-saudi-arabia-enter-new-stage-financial-cooperation-state-owned-bank-opens-riyadh-branch?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3233565/china-saudi-arabia-enter-new-stage-financial-cooperation-state-owned-bank-opens-riyadh-branch?utm_source=rss_feed Wed, 06 Sep 2023 04:08:04 +0000 Two of China’s biggest banks, Industrial and Commercial Bank of China (ICBC) and Bank of China (BOC), posted sharply lower profit growth in their interim financial results as they struggled with a slowing economy and persistent crises in the property sector. ICBC, the world’s largest bank with total assets of 43.67 trillion yuan (US$5.99 trillion), reported a 1.2 per cent year-on-year gain in net profit to 173.74 billion yuan in the six months ending June 30. The lender missed expectations of a... https://www.scmp.com/business/banking-finance/article/3232855/bank-china-icbc-see-profit-growth-drop-sharply-slowing-economy-property-crisis-take-toll?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3232855/bank-china-icbc-see-profit-growth-drop-sharply-slowing-economy-property-crisis-take-toll?utm_source=rss_feed Wed, 30 Aug 2023 12:02:54 +0000 ING Bank, the largest lender in the Netherlands, plans to escalate its staff recruitment efforts in Asia to meet the growing green finance opportunities across the region, according to a senior executive at the Dutch multinational company. “We will continue to selectively add capability in sustainable finance in Asia because that is where we are a leader in our industry,” Andrew Bester, head of wholesale banking at ING Bank, said in an interview with the South China Morning Post. “What we want... https://www.scmp.com/business/companies/article/3231640/dutch-bank-ing-boost-recruitment-drive-asia-amid-growing-demand-green-and-sustainable-finance-across?utm_source=rss_feed https://www.scmp.com/business/companies/article/3231640/dutch-bank-ing-boost-recruitment-drive-asia-amid-growing-demand-green-and-sustainable-finance-across?utm_source=rss_feed Sun, 20 Aug 2023 23:30:19 +0000 HSBC, the biggest of Hong Kong’s currency-issuing banks, reported a better-than-expected profit for the second quarter, driven by gains in its commercial and retail banking businesses as it benefited from the rising interest rate environment. The London-based bank, which generates much of its profit in Asia, reported a 12 per cent increase in net profit to US$6.64 billion in the three months ended June 30, from a profit of US$5.49 billion a year earlier. The lender, one of Europe’s largest by... https://www.scmp.com/business/banking-finance/article/3229577/hsbcs-second-quarter-profit-beats-estimates-it-benefited-higher-interest-rates-cost-control?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3229577/hsbcs-second-quarter-profit-beats-estimates-it-benefited-higher-interest-rates-cost-control?utm_source=rss_feed Tue, 01 Aug 2023 04:22:05 +0000 Standard Chartered, one of Hong Kong’s three currency-issuing banks, reported a better-than-expected profit for the second quarter, driven by sharp gains in its transaction banking and Asia businesses amid a period of rising interest rates. The emerging markets-focused lender’s net profit rose by 20 per cent to US$982 million in the three months ended in June, from US$818 million a year earlier, the bank said in a stock exchange filing. The London-based bank, which generates much of its pre-tax... https://www.scmp.com/business/banking-finance/article/3229223/standard-chartereds-second-quarter-profit-beats-estimates-gains-asia-transaction-banking-businesses?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3229223/standard-chartereds-second-quarter-profit-beats-estimates-gains-asia-transaction-banking-businesses?utm_source=rss_feed Fri, 28 Jul 2023 05:05:36 +0000 Xinmei Shen Xinmei Shen Bank of China Hong Kong (BOCHK) is allowing mainland customers to shop with e-CNY, China’s sovereign digital currency, at more than 200 retail outlets in the city, as the bank seeks to boost cross-border use of the digital yuan. BOCHK’s new “cross-border shopping festival” allows Bank of China clients to pay with e-CNY at retailers in Hong Kong – including U Select, CDF Beauty and Lung Fung Dispensary – the bank said in a statement on Tuesday, the start of the festival. The move comes after two... https://www.scmp.com/tech/tech-trends/article/3228094/chinas-digital-currency-bank-china-helps-mainland-tourists-spend-e-cny-hong-kong-select-retailers?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3228094/chinas-digital-currency-bank-china-helps-mainland-tourists-spend-e-cny-hong-kong-select-retailers?utm_source=rss_feed Tue, 18 Jul 2023 11:00:11 +0000 Bank of China, the nation’s largest overseas lender, overtook HSBC for the first time in more than eight years in arranging bond sales in Hong Kong, as investment bankers jostled for a slice of an expanding market while equity offerings slumped to a 20-year low. Bank of China (Hong Kong) was credited with roles in 110 deals worth HK$49.4 billion (US$6.3 billion) in the first half of 2023 including self-led deals, according to Bloomberg’s ranking. Bond bankers at the lender, one of the three... https://www.scmp.com/business/markets/article/3226409/bank-china-pips-hsbc-arranging-hong-kong-bond-deals-ipo-bankers-stare-sars-era-collapse?utm_source=rss_feed https://www.scmp.com/business/markets/article/3226409/bank-china-pips-hsbc-arranging-hong-kong-bond-deals-ipo-bankers-stare-sars-era-collapse?utm_source=rss_feed Mon, 03 Jul 2023 23:30:09 +0000 China should further capture growing interests in using the yuan through regional trade pact and offshore trading centres, according to a Bank of China report, as Beijing presses on to increase global use for the currency in an “orderly” manner. Members of the 15-nation Regional Comprehensive Economic Partnership (RCEP) accounted for 18.9 per cent of yuan-denominated remittances in China last year, compared with 15.9 per cent in 2021 and just 7.1 per cent in 2020, according to the bank’s 2022... https://www.scmp.com/economy/global-economy/article/3223277/chinas-yuan-seen-new-choice-rcep-may-match-pound-and-yen-10-years-report-says?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3223277/chinas-yuan-seen-new-choice-rcep-may-match-pound-and-yen-10-years-report-says?utm_source=rss_feed Wed, 07 Jun 2023 15:00:17 +0000 Investors have been snapping up Chinese banking stocks at a pace not seen since the 2015 market bubble in the hopes that lenders’ profit growth will accelerate and government-led drives to boost valuations and improve efficiency at state-owned enterprises (SOEs) will underpin sentiment. A 10 per cent jump in the Shanghai-listed shares of Bank of China (BOC) on Monday was the first time that the country’s fourth-largest lender hit the exchange-imposed daily limit since July 7, 2015. China Citic... https://www.scmp.com/business/china-business/article/3219953/chinese-banks-surge-pace-not-seen-2015-traders-chase-perennial-laggards-valuation-soe-bets?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3219953/chinese-banks-surge-pace-not-seen-2015-traders-chase-perennial-laggards-valuation-soe-bets?utm_source=rss_feed Tue, 09 May 2023 23:00:19 +0000 Standard Chartered, one of Hong Kong’s three currency-issuing banks, reported a better-than-expected profit for the first quarter, driven by strong growth in its cash management and Asia businesses. The emerging markets-focused lender’s net profit rose by 9.4 per cent to US$1.16 billion in the three months ended in March, from US$1.06 billion a year earlier. The London-based bank, which generates much of its pre-tax profit in Asia, reported US$1.81 billion in pre-tax profit, ahead of the US$1.43... https://www.scmp.com/business/banking-finance/article/3218389/standard-chartereds-first-quarter-profit-jumps-9-cent-cash-management-asia-growth?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3218389/standard-chartereds-first-quarter-profit-jumps-9-cent-cash-management-asia-growth?utm_source=rss_feed Wed, 26 Apr 2023 05:09:33 +0000 HSBC and Bank of China (Hong Kong), two of the city’s major lenders, have expanded their digital payment services to support cross-border transactions as the reopening of China’s border is expected to boost e-commerce in the post-Covid era. HSBC, the biggest of Hong Kong’s three note-issuing banks, introduced a one-stop digital payment tool called HSBC Merchant Box on Thursday. The new platform allows its corporate customers, which include many small and medium-sized enterprises (SMEs) that sell... https://www.scmp.com/business/banking-finance/article/3209660/hsbc-bank-china-hong-kong-push-digital-payment-services-border-reopening-promises-e-commerce-boost?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3209660/hsbc-bank-china-hong-kong-push-digital-payment-services-border-reopening-promises-e-commerce-boost?utm_source=rss_feed Thu, 09 Feb 2023 11:30:18 +0000 There has been considerable excitement in the gold market lately with the price touching US$1,900 an ounce last year and appearing likely to breach US$2,000 before long. But what is happening below the radar with the huge build-up of central bank gold holdings is of greater interest. The People’s Bank of China and Russia’s central bank have been buying heavily, and while this may appear to be little more than shrewd, given that inflation is set to continue rising (even if at a slowing pace),... https://www.scmp.com/comment/opinion/article/3206560/move-over-cryptocurrency-gold-could-have-last-laugh-year?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3206560/move-over-cryptocurrency-gold-could-have-last-laugh-year?utm_source=rss_feed Sat, 14 Jan 2023 17:30:08 +0000 Enoch Yiu Enoch Yiu Bank of China (Hong Kong), one of the three note-issuing banks in the city, has taken the lead to promote the use of digital yuan (e-CNY), offering e-laisee incentives to customers who register to use it. Customers can use their mobile phone number to set up the BOC e-CNY wallet through the e-CNY (Pilot Version) app during the registration period that runs from Monday until December 29, according to a statement from the bank. To encourage customers to try the digital currency, BOCHK is offering... https://www.scmp.com/business/banking-finance/article/3203037/bank-china-offers-customers-e-laisee-promote-retail-use-digital-yuan-hong-kong?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3203037/bank-china-offers-customers-e-laisee-promote-retail-use-digital-yuan-hong-kong?utm_source=rss_feed Mon, 12 Dec 2022 12:35:08 +0000 Chinese banks and authorities are ramping up aid to ease private developers’ liquidity woes following the official release of Beijing’s rescue plan for the sector. Stocks of Chinese developers jumped on the news as banks rushed to provide credit lines to several struggling home builders. A Bank of China representative said the bank is expected to offer support to more developers, without providing details, after the lender on Wednesday signed an agreement with China Vanke, the nation’s... https://www.scmp.com/business/banking-finance/article/3200816/chinese-banks-pledge-billions-credit-support-help-struggling-developers-after-beijing-confirms?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3200816/chinese-banks-pledge-billions-credit-support-help-struggling-developers-after-beijing-confirms?utm_source=rss_feed Thu, 24 Nov 2022 05:41:19 +0000