https://www.scmp.com/rss/320992/feed Liz is the senior finance reporter responsible for the Post's coverage for banking and financial developments in the Greater China region. She has an active track record working with the region's financial industry and institutional investor community since 2005. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Timothy Tse, chief executive of Value Partners, is stepping down after five years in the top job and a decade at the Hong Kong fund house to pursue other business opportunities. Value Partners’ founder and chairman Cheah Cheng Hye will serve as interim CEO until a successor is found. Tse said his departure was amicable. “The company has experienced different cycles throughout my 10 years here. It is time for me to move on and look for other business opportunities,” he told the Post. “Value... https://www.scmp.com/business/money/article/2042699/timothy-tse-resigns-ceo-hong-kong-fund-house-value-partners?utm_source=rss_feed https://www.scmp.com/business/money/article/2042699/timothy-tse-resigns-ceo-hong-kong-fund-house-value-partners?utm_source=rss_feed Thu, 03 Nov 2016 08:48:30 +0000 China’s big five banks are losing money from writing off bad debt at a rate faster than they have been able to earn profits or raise capital this year, diminishing hopes that the industry could start to put the worst of China debt problem behind it next year while the non-performing loan (NPL) ratio is still climbing. Led by the Agricultural Bank of China, which set the industry record for worst NPL ratio of 2.39 per cent, the average NPL ratio at the national “big five” has climbed back to 1.72... https://www.scmp.com/business/banking-finance/article/2041402/chinas-big-5-banks-lost-274-billion-yuan-bad-debt-write?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041402/chinas-big-5-banks-lost-274-billion-yuan-bad-debt-write?utm_source=rss_feed Sun, 30 Oct 2016 13:00:41 +0000 Minsheng Bank, which has been beset by a shareholder battle for management control, said its third-quarter net profit rose 3.4 per cent year on year, reaching 12.2 billion yuan, helped by a smaller tax bill compared to a year ago. Minsheng’s net interest income for the quarter was down 0.2 per cent on year, reaching 23.5 billion yuan, while fee and commission income dropped 7.2 per cent to 11.9 billion yuan, according to a filing. The bank said it managed to lower its tax bill by 1 billion yuan,... https://www.scmp.com/business/banking-finance/article/2041084/minsheng-bank-q3-profit-rises-34pc-thanks-part-reduced-tax?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041084/minsheng-bank-q3-profit-rises-34pc-thanks-part-reduced-tax?utm_source=rss_feed Fri, 28 Oct 2016 13:52:44 +0000 The Agricultural Bank of China said its net profit for the third quarter improved slightly year on year, as the bank managed to increase its fee income and reduce expenses, even as its lending businesses slowed. Profit nudged up 0.65 per cent to 49.1 billion yuan during the three months through September from the year-earlier period, according to a filing. Non-performing loans at were 2.39 per cent as of end September, little changed from its level of 2.4 per cent at the end of June. The banks... https://www.scmp.com/business/banking-finance/article/2041056/agricultural-banks-q3-profit-rises-65pc-lifted-reduced?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041056/agricultural-banks-q3-profit-rises-65pc-lifted-reduced?utm_source=rss_feed Fri, 28 Oct 2016 12:12:39 +0000 China Merchants Bank announced on Friday its net profit for the third quarter rose compared to the same time a year ago, as the bank has aggressively expanded its fees and commissions revenue, even as lending profitability slowed. Net profit rose 7 per cent to 15.5 billion yuan in the three months ended September, according to its filing. Total net profit for the nine months ending September was up 6.9 per cent, reaching 48.4 billion yuan. Net interest income for the period reached 100.7 billion... https://www.scmp.com/business/banking-finance/article/2041054/china-merchants-bank-q3-profit-jumps-7pc-bolstered-fee-and?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041054/china-merchants-bank-q3-profit-jumps-7pc-bolstered-fee-and?utm_source=rss_feed Fri, 28 Oct 2016 11:31:25 +0000 Bank of Communications’ third-quarter net profit rose, as a 2015 restructuring spurred its business units to earn more fees and commissions, allowing the lender to reduce its reliance on interest rate spreads for income. Net profit rose 1.4 per cent to 15 billion yuan in the three months ended September, from last year’s 14.8 billion yuan. Fees and commissions dipped 1.3 per cent to 7.93 billion yuan, while net interest income fell 11.6 per cent to 32.6 billion yuan, according to its... https://www.scmp.com/business/banking-finance/article/2041047/bank-communications-q3-net-profit-rises-restructuring?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041047/bank-communications-q3-net-profit-rises-restructuring?utm_source=rss_feed Fri, 28 Oct 2016 10:28:22 +0000 The Industrial and Commercial Bank of China said its net profit for the third quarter ending September 30 fell 0.07 per cent year on year to 72.8 billion yuan as the bank saw a large drop in income from lending compared to a year ago. “The government has been pressuring banks to cut fees in multiple lines of services this year. The bank’s pre-provision level for operating profits was affected,” said Shujin Chen, research director at DBS Vickers. “Both net interest margins and fee revenues at... https://www.scmp.com/business/banking-finance/article/2041042/icbcs-net-profit-third-quarter-falls-72pc-728-billion-yuan?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041042/icbcs-net-profit-third-quarter-falls-72pc-728-billion-yuan?utm_source=rss_feed Fri, 28 Oct 2016 10:11:07 +0000 JPMorgan is in talks with its Chinese partner to sell back its stake in JPMorgan First Capital after six years of partnership, as the joint venture securities business has not performed to expectation, having delivered three years of lacklustre profits whileseeking new capital investment. The US bank’s spokeswoman in Hong Kong said that China remains a key market for the bank. It will evaluate its options to continue its onshore investment banking presence if the JV dissolves. Meanwhile, the... https://www.scmp.com/business/banking-finance/article/2038756/jpmorgan-looks-exit-china-securities-joint-venture?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2038756/jpmorgan-looks-exit-china-securities-joint-venture?utm_source=rss_feed Thu, 20 Oct 2016 13:57:37 +0000 The rate of penetration of China’s auto-finance market has reached 35 per cent, a jump from the 20 per cent last recorded in 2014. But with auto-related financing still significantly lagging behind developed markets, there may be significant opportunities ahead for auto finance providers, according to a new report by Roland Berger and Credit First Financial Leasing. China sold a record 24.5 million vehicles last year. But against the high sales figures, the total volume of auto loans outstanding... https://www.scmp.com/business/banking-finance/article/2028978/auto-financing-finds-traction-china?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2028978/auto-financing-finds-traction-china?utm_source=rss_feed Tue, 18 Oct 2016 02:13:22 +0000 A petition letter urging the government to amend Hong Kong's immigration policy to recognise spousal visas for same-sex couples has found few signatories among Goldman Sachs, HSBC, JPMorgan and nine other investment banks, despite having garnered 1,414 signatures from the public. Only the Commonwealth Bank of Australia – out of the 13 investment banks invited – signed the letter, which was triggered by a court case last year. Sources familiar with Goldman Sachs’ decision said it declined to sign... https://www.scmp.com/news/hong-kong/economy/article/2024416/goldman-sachs-hsbc-among-12-banks-declining-support-hong-kong?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2024416/goldman-sachs-hsbc-among-12-banks-declining-support-hong-kong?utm_source=rss_feed Sun, 02 Oct 2016 07:30:45 +0000 Shanghai International Port (Group), operator of the world’s largest container harbour, has had its long-term corporate credit rating cut from “AA-” to “A+” by S&P Global Ratings, due to its debt-funded investment in the initial public offering of Postal Savings Bank of China, according to a statement. The port operator will see its finances rapidly deteriorate, following its HK$16 billion subscription of Postal Bank’s IPO, as debt ballons to as much as 37 billion yuan from 21 billion yuan... https://www.scmp.com/business/companies/article/2024081/borrow-money-ipo-shanghai-port-pays-price-rating-cut?utm_source=rss_feed https://www.scmp.com/business/companies/article/2024081/borrow-money-ipo-shanghai-port-pays-price-rating-cut?utm_source=rss_feed Fri, 30 Sep 2016 12:33:41 +0000 China’s “big five” banks are close to seeing their total overseas assets reach 10 trillion yuan for the first time, but a new study finds that their “performance gap” with foreign global peers is still wide. As the mainland lenders see their international influence grow and continue to expand their presence along the Belt and Road countries, Renmin University and PwC have jointly warned that the incremental increase in the banks’ levels of internationalisation may be slowing. “It’s become very... https://www.scmp.com/business/global-economy/article/2023745/overseas-assets-chinas-big-five-banks-close-10-trillion-yuan?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2023745/overseas-assets-chinas-big-five-banks-close-10-trillion-yuan?utm_source=rss_feed Thu, 29 Sep 2016 14:23:54 +0000 China’s central bank has given the green light for credit default swaps to start trading in the country’s interbank markets for the first time, adding another financial tool to diversify credit risks and nurture the healthy growth of the capital markets. The move covers swaps tied to the debt of companies, countries or multinational agencies, according to a statement by the National Association of Financial Market Institutional Investors (NAFMII), a central bank unit that acts as a guild for the... https://www.scmp.com/business/banking-finance/article/2022057/china-makes-step-launching-credit-default-swap-market?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2022057/china-makes-step-launching-credit-default-swap-market?utm_source=rss_feed Fri, 23 Sep 2016 12:15:25 +0000 US hedge fund Elliott Advisors launched court proceedings against Bank of East Asia on Wednesday, accusing the bank and its directors of “unfairly prejudicing” shareholders when it placed shares in two separate deals with Japan’s Sumitomo and Spain’s CaixaBank in March 2015 and January this year. The fund wants key clauses from the agreements annulled, and asked Hong Kong’s High Court to rule that the bank may not enter into similar agreements in the future without court approval. If the... https://www.scmp.com/business/banking-finance/article/2021379/hedge-fund-elliott-advisors-case-against-bank-east-asia?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2021379/hedge-fund-elliott-advisors-case-against-bank-east-asia?utm_source=rss_feed Wed, 21 Sep 2016 14:08:38 +0000 Hong Kong’s banks have been told to up their game when it comes to conducting China-related business as the industry undergoes a painful contraction driven by the mainland’s economic slowdown. The calls come as leaders of Hong Kong’s banking industry have increasingly begun to realize that some of the city’s advantages as an international yuan hub are no longer valid amid an unprecedented year of flattening profits. Ba Shusong, a former deputy director-general of the State Council Development... https://www.scmp.com/business/banking-finance/article/2021002/hong-kong-banks-told-improve-their-game-when-it-comes?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2021002/hong-kong-banks-told-improve-their-game-when-it-comes?utm_source=rss_feed Tue, 20 Sep 2016 11:28:06 +0000 Nobel laureate and former World Bank chief economist Joseph Stiglitz has warned there will be winners and losers as Asia plunges headlong into an increasing number of trade agreements and economic integration programmes that connect the diverse and disparate economies of the region. As countries pursue more such trade agreements, Stiglitz said policymakers should create trade assistance programmes to address the needs of those that stand to lose out, or Asia could repeat the US experience where... https://www.scmp.com/business/article/2020691/economist-stiglitz-warns-winners-and-losers-asia-pursues-greater-economic?utm_source=rss_feed https://www.scmp.com/business/article/2020691/economist-stiglitz-warns-winners-and-losers-asia-pursues-greater-economic?utm_source=rss_feed Mon, 19 Sep 2016 12:48:26 +0000 With the US presidential election less than two months away, a Daiwa economist has warned that a Donald Trump presidency could spell big trouble for China’s economy. Backed by a popular American view that the US has not received a fair deal since China joined the World Trade Organisation in 2001, Trump advocates a four-point plan to reform US-China trade policy. Top of the Trump agendahas been a threat to name China a currency manipulator. The candidate has also said he would force China to... https://www.scmp.com/business/global-economy/article/2019375/trump-presidency-would-spell-trouble-chinas-economy-says?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2019375/trump-presidency-would-spell-trouble-chinas-economy-says?utm_source=rss_feed Wed, 14 Sep 2016 11:38:51 +0000 Postal Savings Bank of China has warned investors of the risks it faces, including a high concentration of its loan portfolio with China Railway Group and uncertainty in maintaining the current scale of its outlets, as it prepares to launch what will be the world’s biggest initial public offering of the year. Despite the warnings, some sources said 90 per cent of the offer marked for institutional investors was fully subscribed to as of 8pm Tuesday night thanks mainly to mainland Chinese... https://www.scmp.com/business/banking-finance/article/2019040/chinas-postal-savings-bank-taps-mainland-institutional?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2019040/chinas-postal-savings-bank-taps-mainland-institutional?utm_source=rss_feed Tue, 13 Sep 2016 13:24:58 +0000 Postal Savings Bank of China, which operates more branches in the country than any other bank,plans to raise as much as US$8.1 billion in an initial public offer, choosing to raise capital on the Hong Kong Stock Exchange. The bank, operating 40,057 branches in mainland China, plans to sell 12.1 billion shares at an indicative price range of between HK$4.68 and HK$5.18 per share, raising between US$7.3 and US$8.1 billion. The amount raised makes Postal Savings Bank the fourth-largest Chinese bank... https://www.scmp.com/business/companies/article/2018857/postal-savings-bank-raise-us81-bln-hong-kong-ipo?utm_source=rss_feed https://www.scmp.com/business/companies/article/2018857/postal-savings-bank-raise-us81-bln-hong-kong-ipo?utm_source=rss_feed Tue, 13 Sep 2016 01:30:45 +0000 Cathay Pacific and Dragonair have banned passengers from using Samsung’s problematic Galaxy Note 7 smartphone on their planes or placing them in checked luggage, while the Civil Aviation Department urged other airlines to address the issue. A fault with the battery design has caused dozens of the phones to explode in the United States, prompting the country’s consumer protection agency and Federal Aviation Administration to issue warnings against using them on planes. Samsung halts sales of... https://www.scmp.com/news/hong-kong/article/2018293/cathay-pacific-and-dragonair-ban-use-new-samsung-galaxy-phones-planes?utm_source=rss_feed https://www.scmp.com/news/hong-kong/article/2018293/cathay-pacific-and-dragonair-ban-use-new-samsung-galaxy-phones-planes?utm_source=rss_feed Sat, 10 Sep 2016 14:15:15 +0000 Senior analysts have warned frothy prices may have re-emerged in Hong Kong’s residential market as new projects released for sale on Saturday saw massive over-subscriptions and sold-out responses from local flat buyers. Experts warn buyers may be in the market purely driven by aggressive financing deals offered by property developers. But they are doing so with little regard for future interest rates adjustments while the outlook for the local economy is still poor. Among the key residential... https://www.scmp.com/news/hong-kong/economy/article/2018274/and-away-hong-kong-residential-flat-prices-rise-aggressive?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2018274/and-away-hong-kong-residential-flat-prices-rise-aggressive?utm_source=rss_feed Sat, 10 Sep 2016 11:40:29 +0000 China’s banking industry has suffered a setback in its ability to enforce creditors’ rights, after the nation’s banking regulator issued a formal guidance on Friday saying they are no longer allowed to individually stop lending or recalling loans from troubled corporates. The guidance, issued in a notice on The China Banking Regulatory Commission’s website, is designed to help big state-owned enterprises and over-capacity industries weather the challenging economy, said analysts. But the terms... https://www.scmp.com/business/banking-finance/article/2018077/banking-regulator-launches-debt-committee-plan-better?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2018077/banking-regulator-launches-debt-committee-plan-better?utm_source=rss_feed Fri, 09 Sep 2016 13:20:47 +0000 The International Capital Market Association has pledged to lend its expertise towards the development of a standardised Silk Road bond, setting a pathway for new issuance and international trade in the fixed-income markets of “One Belt, One Road” countries. Among participating financial institutions, Bank of China, DBS, Goldman Sachs, and Standard Chartered Bank will be part of a working group to support the setup a framework for the new standardised format. Law firm Clifford Chance, mainland... https://www.scmp.com/business/banking-finance/article/2017992/global-bankers-pledge-expertise-foster-standardised-silk?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2017992/global-bankers-pledge-expertise-foster-standardised-silk?utm_source=rss_feed Fri, 09 Sep 2016 07:26:44 +0000 China’s biggest banks have joined their western peers in eliminating thousands of jobs as the nation’s banking industry faces its most challenging year amid a slowing economy and top-down financial reforms. The top four national banks, which reported negative to flat net profit growth for the first half of this year, reported a combined total of 22,260 jobs that have been eliminated. Bank of China said its headcount at the end of June 2016 has decreased by 6,881 to a total of 303,161 employees,... https://www.scmp.com/business/banking-finance/article/2015965/chinas-state-owned-banks-cut-thousands-jobs-profit-growth?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2015965/chinas-state-owned-banks-cut-thousands-jobs-profit-growth?utm_source=rss_feed Tue, 06 Sep 2016 07:49:57 +0000 Harbin Bank Co said it is leading a group of Chinese lenders to provide 10 billion yuan (US$1.5 billion) in syndicated loans to Russia’s state-run development bank, as it looks north of the border for business. The loan to Russia’s State Corporation Bank for Development & Foreign Economic Affairs, also known as Vnesheconombank (VEB), will be used for a range of unspecified investment projects for three years, with an option to extend them for another three years, according to a report by SKRIN... https://www.scmp.com/business/banking-finance/article/2015128/harbin-bank-leads-us-15-billion-syndicated-loan-russian?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2015128/harbin-bank-leads-us-15-billion-syndicated-loan-russian?utm_source=rss_feed Mon, 05 Sep 2016 09:37:18 +0000 Hong Kong’s loan market is set to see the dominance of Bank of China (Hong Kong) expand even more in the second half of the year, with BOCHK management taking advantage of competitors turning conservative in their credit assessments in the wake of heavy losses. Regulatory data shows that in the eight months to the end of August Hong Kong’s loan market has been largely flat, growing at a pace of just 2.2 per cent year on year. However, against the tide of negative growth in the industry and even... https://www.scmp.com/business/banking-finance/article/2014566/bank-china-hk-set-continue-loan-war-second-half-competitors?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2014566/bank-china-hk-set-continue-loan-war-second-half-competitors?utm_source=rss_feed Sun, 04 Sep 2016 10:06:31 +0000 Media analytics, particularly the monitoring of social media trends by financial technology (fintech) start-ups, can provide regulators with new low-cost ways to spot misconduct, according to a senior official at Hong Kong’s market regulator. Benedicte Nolens, the head of risk and strategy for the Hong Kong Securities and Futures Commission, said her research into fintech and regulatory technology (regtech), had brought up the potential of media analytics, which relies on artificial intelligence... https://www.scmp.com/business/article/2013139/media-analytics-may-provide-low-cost-tool-financial-regulators?utm_source=rss_feed https://www.scmp.com/business/article/2013139/media-analytics-may-provide-low-cost-tool-financial-regulators?utm_source=rss_feed Fri, 02 Sep 2016 13:22:35 +0000 China Guangfa Bank announced the resignation of chairman Dong Jianyue and president Li Mingxian after insurance giant China Life assumed defacto control over the Guanghzou-based lender. The departures came as Citi and China Life formally closed a deal that saw Citi sell a 20 per cent stake in Guangfa to China Life for 19.7 billion yuan. China Life now controls 43.7 per cent of Guangfa’s shares. The two departing bank executives were believed to have been appointees of Citi. They both issued... https://www.scmp.com/business/banking-finance/article/2011790/guangfa-bank-sees-its-chairman-president-resign-china-life?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2011790/guangfa-bank-sees-its-chairman-president-resign-china-life?utm_source=rss_feed Wed, 31 Aug 2016 10:23:07 +0000 Bank of China said on Tuesday its latest net profit attributable to shareholders for the first half of this year increased by 2.52 per cent to 93 billion yuan. The result missed initial analyst expectations of 94.1 billion yuan, according to Reuters data. The bank’s net interest income declined by 5.22 per cent year on year to 154.9 billion yuan. Fees and commissions income at the bank, meanwhile, also declined by 4.43 per cent, reaching 47.8 billion yuan in the latest period. In the first half... https://www.scmp.com/business/banking-finance/article/2011269/bank-china-disappoints-25pc-rise-first-half-profit?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2011269/bank-china-disappoints-25pc-rise-first-half-profit?utm_source=rss_feed Tue, 30 Aug 2016 09:13:11 +0000 China’s largest banks must look to non-interest income to bolster their earnings in future, after the central bank’s move last October to change the way interest rates are set squashed profit margins between lending and deposit rates. Three of the country’s five largest banks have already reported first-half profit growth of between half a percentage point and 1.3 per cent, all weighed down by dwindling net interest income. Agricultural Bank of China, operator of the country’s biggest network of... https://www.scmp.com/business/banking-finance/article/2011221/chinas-major-banks-look-non-interest-income-growth-rates?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2011221/chinas-major-banks-look-non-interest-income-growth-rates?utm_source=rss_feed Tue, 30 Aug 2016 07:33:35 +0000 China Minsheng Banking Corp., the country’s biggest non-state lender, reported a 1.7 per cent increase in first-half net profit, helped by higher income from fees and commissions. Net profit rose to 27.2 billion yuan, or 0.75 yuan per share for the first six months of the year, the bank said in a statement to the Hong Kong Stock Exchange. Income from fees and commissions jumped 11.6 per cent to 28.1 billion yuan, while net interest income rose 0.9 per cent to 47.4 billion yuan, Minsheng... https://www.scmp.com/business/banking-finance/article/2011106/minsheng-banks-interim-net-profit-rises-17-cent-helped-fees?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2011106/minsheng-banks-interim-net-profit-rises-17-cent-helped-fees?utm_source=rss_feed Tue, 30 Aug 2016 03:52:02 +0000 China Construction Bank reported a surprising 1 per cent rise in interim profit, as it kept its non-performing loans in check during the first six months, becoming the first among the country’s four biggest lenders to turn prudential management to sound financial results. Net profit rose to 133.9 billion yuan (HK$156 billion) in the first half, more than the 131.8 billion yuan average estimate by three analysts polled by the South China Morning Post. Net interest income at the Beijing-based bank... https://www.scmp.com/business/banking-finance/article/2009073/construction-bank-posts-first-half-earnings-surprise-it?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2009073/construction-bank-posts-first-half-earnings-surprise-it?utm_source=rss_feed Thu, 25 Aug 2016 14:31:42 +0000 China’s four biggest banks are likely to report a bad interim when they post their financial results for the six months ended June starting this week, as rising bad loans force them to set aside provisions, while a shrinking economy crimps demand for lending. Declines are likely to be led by Bank of China, the country’s oldest lender, with a 4.2 per cent drop in first-half profit to 89.6 billion yuan (HK$89.6 billion), according to estimates by CLSA. The Beijing-based bank is scheduled to report... https://www.scmp.com/business/banking-finance/article/2008866/chinas-big-4-banks-may-post-bad-interim-week-bad-loans-rise?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2008866/chinas-big-4-banks-may-post-bad-interim-week-bad-loans-rise?utm_source=rss_feed Thu, 25 Aug 2016 05:56:08 +0000 Japanese ramen restaurant chain Ajisen China reported a 9.8 per cent fall in its gross profit for the first half of the year as the slowing economy and entry of new players painted a gloomy picture for China’s catering sector. The Hong Kong-based restaurant chain, founded by billionaire Poon Wai, registered total turnover of HK$1.4 billion, 11.1 per cent down from a year earlier. With income growth softening and more young Chinese consumers opting to have takeaways or order food online, the... https://www.scmp.com/business/companies/article/2008007/ramen-chain-ajisen-china-hit-98pc-drop-profit-amid-slowing?utm_source=rss_feed https://www.scmp.com/business/companies/article/2008007/ramen-chain-ajisen-china-hit-98pc-drop-profit-amid-slowing?utm_source=rss_feed Tue, 23 Aug 2016 13:49:11 +0000 US private equity fund Carlyle Group may be one of the two final bidders left standing in a competitive auction process that will see the US$178 billion fund buy out US fast food chain McDonald’s China franchise of 2,200 restaurants for more than US$2 billion. The deal comes as McDonald’s, which first expanded into China via an outlet opened in Shenzhen in 1990, announced in March it was looking to restructure its holdings in Asia. The fast food chain is seeking to reduce its physical ownership... https://www.scmp.com/business/companies/article/2007960/carlyle-among-final-two-bidders-mcdonalds-china-franchise-deal?utm_source=rss_feed https://www.scmp.com/business/companies/article/2007960/carlyle-among-final-two-bidders-mcdonalds-china-franchise-deal?utm_source=rss_feed Tue, 23 Aug 2016 11:18:50 +0000 Bank of East Asia said on Friday that in the first half of the year it reached 23 per cent of its announced three-year cost saving target to trim HK$700 million – or 8 per cent of its 2015 costs – by the end of 2018. The bank’s management said they will push on with the programme this year, aiming to deliver flat cost growth and improved returns to shareholders over the second half the year. The announcement came as BEA reported a 30 per cent fall in year on year pre-tax profit for the first... https://www.scmp.com/business/banking-finance/article/2006040/bank-east-asia-reports-30pc-fall-pre-tax-profit-first-half?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2006040/bank-east-asia-reports-30pc-fall-pre-tax-profit-first-half?utm_source=rss_feed Fri, 19 Aug 2016 04:26:25 +0000 Dagong Global Credit Group, a 22-year-old mainland credit rating agency with global ambitions, has upped the ante in its bid to compete with the “big three” with a plan to expand bureaus outside China and poach analysts from the ranks of rivals like Standard & Poor’s and Fitch Ratings. Rather than challenge global agencies by relying on its historical strength in rating mainland companies or cross-border yuan-denominated debt issuances, Dagong executives said the focus of its international... https://www.scmp.com/business/banking-finance/article/2000489/chinas-dagong-global-credit-mounts-challenge-big-three?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2000489/chinas-dagong-global-credit-mounts-challenge-big-three?utm_source=rss_feed Sun, 07 Aug 2016 11:47:29 +0000 Standard Chartered Bank has abandoned its target to restore return on equity to above 8 per cent by 2018 and 10 per cent by 2020 as it announced a 46 per cent year on year decline in pretax profit for the first half to US$994 million under a challenging operating environment of a dour economic outlook and volatile global markets. The figure was better than the US$783.7 million in pre-tax earnings that analysts were expecting in a Reuters consensus poll. The result is the bank’s first major... https://www.scmp.com/business/companies/article/1998802/stanchart-gives-roe-target-first-half-pretax-profit-falls-46-cent?utm_source=rss_feed https://www.scmp.com/business/companies/article/1998802/stanchart-gives-roe-target-first-half-pretax-profit-falls-46-cent?utm_source=rss_feed Wed, 03 Aug 2016 13:19:17 +0000 Standard Chartered Bank has hired International Monetary Fund director José Vinals as its new chairman, a move seen as a conciliatory gesture to placate disgruntled shareholders dissatisfied with the performance of outgoing chairman John Peace as the bank faces even greater regulatory hurdles. At the IMF Vinals was a director of the monetary and capital markets department. He has no previous experience working in the private sector, but has enjoyed good working relations with international... https://www.scmp.com/business/banking-finance/article/1995987/stanchart-taps-former-imf-executive-its-new-chairman-amid?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1995987/stanchart-taps-former-imf-executive-its-new-chairman-amid?utm_source=rss_feed Thu, 28 Jul 2016 05:38:54 +0000 The Bank of Singapore says it’s leaning towards working with an onshore Chinese partner over a direct entry on its own, as it gears up for its first foray into mainland China, in the expectation the joint venture will deliver benefits in terms of client contacts while avoiding the need for costly new hires. Bank of Singapore Chief Executive Bahren Shaari said his bank is in no rush to reach a decision, but the approach signals a more risk-averse way into the market amid growing headwinds for... https://www.scmp.com/business/money/wealth/article/1994631/bank-singapore-eyes-entry-china-onshore-partnership-model?utm_source=rss_feed https://www.scmp.com/business/money/wealth/article/1994631/bank-singapore-eyes-entry-china-onshore-partnership-model?utm_source=rss_feed Mon, 25 Jul 2016 14:18:18 +0000 A senior minister in Singapore has urged Asean member states to work more closely together to deepen economic and financial ties and help anchor regional peace and stability in the wake of rising geopolitical tensions following the ruling on territorial rights in the South China Sea. Modelled after the European Union’s single market initiative, the 11 members of the Association of Southeast Asian Nations have come up with the Asean Economic Community (AEC) – a roadmap and common regulatory... https://www.scmp.com/business/global-economy/article/1990173/singapore-official-urges-asean-members-aim-economic-and?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1990173/singapore-official-urges-asean-members-aim-economic-and?utm_source=rss_feed Fri, 15 Jul 2016 08:19:33 +0000 Singapore’s most prolific cross-border acquirer of banking and financial businesses says he is considering his business strategies more carefully, as Asia has come to a crossroads follow The Hague’s ruling over its territorial rights in the South China Sea. Samuel Tsien, the group chief executive officer OCBC Bank, said: “2016 started off eventful, and continues to be so... The disagreements over the South China Sea continue to be a potential flashpoint for the region.” “While we keep an eagle’s... https://www.scmp.com/business/markets/article/1989863/ocbc-bank-chief-warns-south-china-sea-ruling-could-be-potential?utm_source=rss_feed https://www.scmp.com/business/markets/article/1989863/ocbc-bank-chief-warns-south-china-sea-ruling-could-be-potential?utm_source=rss_feed Thu, 14 Jul 2016 13:45:00 +0000 Nobel Prize-winning economist Paul Krugman downplayed the likelihood of a Federal Reserve interest rate hike in the near term, and even suggested that conditions for ramping up rates to more normal levels may never materialise if inflationary pressures remain subdued. Krugman said on the sidelines of the OCBC Global Treasury, Economic and Business Forum on Thursday that any policy tightening by the Fed would likely backfire. “The Fed really, really wants to raise rates. They may do it. The... https://www.scmp.com/business/companies/article/1989823/nobel-economist-paul-krugman-says-zero-interest-rate-environment?utm_source=rss_feed https://www.scmp.com/business/companies/article/1989823/nobel-economist-paul-krugman-says-zero-interest-rate-environment?utm_source=rss_feed Thu, 14 Jul 2016 10:59:10 +0000 The Bank of East Asia is facing questions over the robustness of its anti-money laundering procedures in mainland China following bank transactions leaked by the media on the weekend that purport to show the Hong Kong-based lender may have been used as a conduit to disburse large sums of money to senior executives at Shandong-based Evergrowing Bank. Sources with knowledge of the case have confirmed that it has come to the attention of regulators and is currently under investigation by the China... https://www.scmp.com/business/banking-finance/article/1988552/bank-east-asia-facing-questions-over-its-anti-money?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1988552/bank-east-asia-facing-questions-over-its-anti-money?utm_source=rss_feed Mon, 11 Jul 2016 14:00:00 +0000 Foreign issuers in the offshore “dim sum” market will see 364 billion yuan worth of debt issued in the past mature this year, but the corporates behind these instruments face the option of having to refinance the bonds from the market or dig deep into their own pockets to repay investors. The peaking of the current wave of maturing debt is happening just as yuan in the offshore market has become ever harder to come by and more expensive to attain from either banks or offshore bond investors.... https://www.scmp.com/business/money/investment-products/article/1988072/foreign-corporates-still-stuck-policy-quagmire?utm_source=rss_feed https://www.scmp.com/business/money/investment-products/article/1988072/foreign-corporates-still-stuck-policy-quagmire?utm_source=rss_feed Sun, 10 Jul 2016 13:45:15 +0000 In the aftermath of new troubles stemming from Britain’s Brexit, which have just added to HSBC’s existing challenges, analysts have concluded that chief executive Stuart Gulliver’s goal to restore the bank’s return-on-equity back above 10 per cent by 2017 – before the end of his tenure – won’t be achievable this decade. Further, with earnings forecasted to be challenged for years to come, calls from analysts are growing louder saying the bank’s longstanding policy of paying generous dividends of... https://www.scmp.com/business/banking-finance/article/1986285/hsbcs-goal-restore-banks-return-equity-not-achievable?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1986285/hsbcs-goal-restore-banks-return-equity-not-achievable?utm_source=rss_feed Wed, 06 Jul 2016 12:30:03 +0000 Faced with mounting questions from business leaders on the economic viability of the proposed investment ideas under China’s One Belt One Road vision, the chairman of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun reached out publicly on Tuesday and sought to reassure private sector business leaders on their concerns over sovereign risks in the destination countries. Jin reassurances have come as a wide spectrum of private sector players, including former Hong Kong financial secretary... https://www.scmp.com/business/global-economy/article/1985851/aiib-chairman-urges-private-sector-not-worry-over-sovereign?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1985851/aiib-chairman-urges-private-sector-not-worry-over-sovereign?utm_source=rss_feed Tue, 05 Jul 2016 16:00:07 +0000 The process of yuan internationalisation may face a setback as volatility in the world’s two largest reserve currencies - the British pound and the euro - are pushing the very foundation of the global monetary order into question, warned Bank of China Hong Kong (BOCHK) on Wednesday. E Zhihuan, chief economist at BOCHK said: “The financial markets have been the biggest casualty in the Brexit event. Forex volatility has risen steeply. We could already see individual defaults in market trading as a... https://www.scmp.com/business/markets/article/1983216/yuan-internationalisation-likely-delayed-euro-and-pound-volatility?utm_source=rss_feed https://www.scmp.com/business/markets/article/1983216/yuan-internationalisation-likely-delayed-euro-and-pound-volatility?utm_source=rss_feed Wed, 29 Jun 2016 14:09:26 +0000 Thirty-two mainland banks with a presence in Hong Kong have banded together to form the Chinese Banking Association of Hong Kong, an industry group that will spearhead banking policies and seek to create opportunities related to China’s 13th five-year plan and One Belt One Road objectives. The move is an effort by mainland banks to assert themselves into an effective lobby group to steer Hong Kong banking and financial policy developments. The new body won the backing of the Hong Kong and Macao... https://www.scmp.com/business/global-economy/article/1982287/mainland-banks-establish-hong-kong-lobby-group-greater-say?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1982287/mainland-banks-establish-hong-kong-lobby-group-greater-say?utm_source=rss_feed Mon, 27 Jun 2016 15:24:43 +0000 Alarmed by the ever increasing prospect of bank runs and so-called fire sales in investment funds as their accumulated asset size becomes a source of potential systemic financial risk, Hong Kong’s Securities and Futures Commission is set to introduce bank-like liquidity guidelines for authorised investment funds. Industry and regulatory sources told the South China Morning Post on Tuesday that the SFC has already conducted a “soft consultation” with industry associations and top funds in the... https://www.scmp.com/business/markets/article/1975290/hong-kongs-sfc-set-issue-bank-liquidity-guidelines-funds?utm_source=rss_feed https://www.scmp.com/business/markets/article/1975290/hong-kongs-sfc-set-issue-bank-liquidity-guidelines-funds?utm_source=rss_feed Tue, 14 Jun 2016 12:34:32 +0000