https://www.scmp.com/rss/36679/feed Established in 1908, Bank of Communications is one of the largest banks in the People’s Republic of China. It was listed in Hong Kong in 2005 and in Shanghai in 2007. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Yulu Ao Yulu Ao China’s largest state-owned banks delivered stronger-than-expected first-quarter earnings, with rising interest income and steady asset quality pointing to improving credit demand as Beijing ramps up support for key sectors of the economy. The Big Four lenders – Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC) and Bank of China (BOC) – all reported growth in both revenue and net profit, marking a turnaround from the margin pressure... https://www.scmp.com/business/china-business/article/3351965/chinas-big-four-banks-post-stronger-earnings-policy-lending-lifts-growth?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3351965/chinas-big-four-banks-post-stronger-earnings-policy-lending-lifts-growth?utm_source=rss_feed Thu, 30 Apr 2026 07:00:09 +0000 Ralph Jennings Ralph Jennings China has launched a bond-market-connect scheme with Brazil, Chinese media outlets reported this week, marking the first such link among emerging markets. Schemes such as this one, often dubbed “connects” between Chinese bond or stock markets and their offshore counterparts, typically allow investors to bypass special permits or capital-flow controls when trading on either side’s exchanges. China now maintains at least five offshore capital-market “connect” schemes on three continents. Hong... https://www.scmp.com/economy/global-economy/article/3351185/brazil-beckoned-china-now-has-stock-and-bond-connect-schemes-these-5-regions?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3351185/brazil-beckoned-china-now-has-stock-and-bond-connect-schemes-these-5-regions?utm_source=rss_feed Thu, 23 Apr 2026 23:00:10 +0000 Yulu Ao Yulu Ao China’s six largest state-owned banks are set to distribute more than 420 billion yuan (US$61 billion) in dividends for 2025, extending record-high payouts and strengthening their appeal as a source of stable income as investors rotate into defensive assets amid low interest rates. Combined payouts from Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank of China were expected to... https://www.scmp.com/business/china-business/article/3349184/icbc-and-ccb-lead-chinas-six-biggest-banks-us61b-dividend-payout?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3349184/icbc-and-ccb-lead-chinas-six-biggest-banks-us61b-dividend-payout?utm_source=rss_feed Tue, 07 Apr 2026 02:30:08 +0000 Phoebe Zhang Phoebe Zhang Jiang Chaoliang, Communist Party chief of Hubei when Covid-19 first hit the province and a former prominent banker, has been charged with accepting “an especially huge amount” of bribes starting in the 1990s. The investigation into his case, first announced in February last year, has closed, and the Nanjing Municipal People’s Procuratorate has filed a public prosecution with the Nanjing Intermediate People’s Court, according to a statement on Tuesday from the Supreme People’s... https://www.scmp.com/news/china/politics/article/3346885/former-banker-and-hubei-party-boss-indicted-accepting-especially-huge-bribes?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3346885/former-banker-and-hubei-party-boss-indicted-accepting-especially-huge-bribes?utm_source=rss_feed Tue, 17 Mar 2026 09:15:35 +0000 Jevans Nyabiage Jevans Nyabiage Beijing’s push to internationalise the yuan is gaining a new vehicle in Africa as another major multilateral lender is set to diversify towards the Chinese currency to slash borrowing costs and reduce the risks of dollar volatility. Multilateral lender Africa Finance Corporation (AFC) has confirmed that a debut panda bond issuance is “on the table for this year”, as it looks to deepen its ties with Chinese capital markets following last year’s successful triple-A Chinese rating. Banji Fehintola,... https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed Fri, 13 Feb 2026 04:00:14 +0000 Xinlu Liang,Yuanyue Dang Xinlu Liang,Yuanyue Dang China’s anti-corruption watchdog has detailed how disgraced former banker and Communist Party chief of Hubei province Jiang Chaoliang received bribes for favours, ultimately landing himself and his brothers under investigation. The revelations came in an episode of a CCTV documentary series that aired on Tuesday night during the fifth plenary session of the Central Commission for Discipline Inspection (CCDI). Held at the beginning of each year, the session aims to sum up the achievements of... https://www.scmp.com/news/china/politics/article/3339899/chinas-anti-corruption-watchdog-reveals-how-former-banker-fell-bribery-scandal?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3339899/chinas-anti-corruption-watchdog-reveals-how-former-banker-fell-bribery-scandal?utm_source=rss_feed Wed, 14 Jan 2026 11:08:22 +0000 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 Zhu Wenqian,Aileen Chuang Zhu Wenqian,Aileen Chuang Distressed mainland developer China Vanke has unveiled a revised bond extension proposal, seeking approval from creditors after its initial three payment extension bids were rejected, a development that has fuelled concerns about the crisis-hit property sector. Holders of the 2 billion yuan (US$366 million) bond – which matured on Monday – would vote on the revised plan from Thursday to Monday, according to a filing to the Shanghai Clearing House on Tuesday. The proposal needs to secure the... https://www.scmp.com/business/banking-finance/article/3336719/china-vanke-unveils-fresh-proposal-extend-us366-million-bond-after-3-failed-bids?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3336719/china-vanke-unveils-fresh-proposal-extend-us366-million-bond-after-3-failed-bids?utm_source=rss_feed Wed, 17 Dec 2025 05:16:58 +0000 Emily Hung Emily Hung Students, workers and domestic helpers affected by the deadly Hong Kong blaze that claimed 151 lives will each receive a payout of HK$20,000 (US$2,570) as part of government relief efforts. And donations to the government’s relief fund have reached HK$1.6 billion, reflecting strong public support for the victims. The authorities on Monday also announced grants ranging from HK$50,000 to HK$100,000 for the dozens of people injured in the fire. Aid continued to pour in from the authorities and... https://www.scmp.com/news/hong-kong/society/article/3334812/students-workers-and-domestic-helpers-hit-hong-kong-fire-get-hk20000-payout?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3334812/students-workers-and-domestic-helpers-hit-hong-kong-fire-get-hk20000-payout?utm_source=rss_feed Mon, 01 Dec 2025 15:56:22 +0000 Julie Zhang Julie Zhang The Hong Kong government priced a record HK$10 billion (US$1.3 billion) tokenised green bond offering on Monday, completing the world’s first government issuance to allow settlement using digital-fiat currencies as the city pushes to burnish its standing as a global hub for digital assets. “Hong Kong is uniquely positioned to connect traditional finance to the digital asset era,” said Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, in an announcement published by the... https://www.scmp.com/business/banking-finance/article/3332391/hong-kong-prices-worlds-first-government-bonds-tokenised-settlement?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3332391/hong-kong-prices-worlds-first-government-bonds-tokenised-settlement?utm_source=rss_feed Tue, 11 Nov 2025 14:46:26 +0000 Matthew Cheng Matthew Cheng Hong Kong’s coming Legislative Council election has seen a significant increase in candidates linked to mainland Chinese enterprises, with at least 49 – almost a third of the total – affiliated with such firms, up 50 per cent from 2021. The higher proportion reflected the growing prominence of mainland capital in Hong Kong’s economy and Beijing’s push for Legco to drive the city’s integration into national development, a political scholar said. A check by the Post found that among the 161... https://www.scmp.com/news/hong-kong/politics/article/3331537/30-161-hong-kong-legco-election-candidates-linked-mainland-chinese-firms?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/3331537/30-161-hong-kong-legco-election-candidates-linked-mainland-chinese-firms?utm_source=rss_feed Tue, 04 Nov 2025 23:30:12 +0000 Bloomberg Bloomberg Chinese technology and mobile gaming giant Tencent Holdings has appointed banks for its first bond offering in four years. The company is proposing to sell offshore-yuan denominated notes with five-year, 10-year and 30-year tenors as early as Tuesday, according to a person familiar with the matter. It said Bank of China and JPMorgan Chase would be the joint global coordinators, with Bank of Communications and Morgan Stanley serving as the joint bookrunners for the deal, the person added. If... https://www.scmp.com/business/china-business/article/3325533/tencent-appoints-banks-first-bond-sale-4-years?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3325533/tencent-appoints-banks-first-bond-sale-4-years?utm_source=rss_feed Mon, 15 Sep 2025 03:24:18 +0000 Bloomberg Bloomberg Schroders has become the latest global asset manager to be caught up in Hong Kong’s commercial property meltdown. Within just a few months, two assets managed by its property investment arm have been seized by bank creditors. Now it faces a new challenge relating to a loan for a three-floor commercial space at Harbourfront Landmark in Hong Kong’s Hung Hom district. The facility was not repaid on the original maturity date. The lender, Bank of Communications (Hong Kong), was now weighing various... https://www.scmp.com/business/article/3324996/schroders-hit-hong-kong-property-slump-banks-seize-assets?utm_source=rss_feed https://www.scmp.com/business/article/3324996/schroders-hit-hong-kong-property-slump-banks-seize-assets?utm_source=rss_feed Wed, 10 Sep 2025 04:53:06 +0000 Cao Li Cao Li China’s top banks face continued pressure, as a slowing economy, lower interest rates and weak loan demand weighed on first-half earnings. Net profit at Industrial and Commercial Bank of China (ICBC), the world’s largest bank by assets, fell 1.4 per cent in the first half from a year earlier to 168.1 billion yuan (US$23.5 billion), according to its interim results announced on Friday after the market closed. Its net interest margin (NIM), a key indicator of a bank’s profitability, fell to 1.3... https://www.scmp.com/business/china-business/article/3323686/profitability-pressure-grows-chinas-state-banks-amid-low-rates-poor-loan-demand?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3323686/profitability-pressure-grows-chinas-state-banks-amid-low-rates-poor-loan-demand?utm_source=rss_feed Fri, 29 Aug 2025 11:23:28 +0000 Julie Zhang Julie Zhang HSBC will retain the highest return to shareholders among lenders in the Greater China region, according to JPMorgan analysts, who have raised their price target for the bank’s shares twice since July. The Hong Kong bank’s shares may advance to HK$122 by the end of 2026, JPMorgan said after raising its price target on August 1 from a July 22 revision of HK$118. HSBC’s Hong Kong-listed shares closed 0.7 per cent higher at HK$97 on Wednesday. The 160-year-old bank, which traces its roots to Hong... https://www.scmp.com/business/banking-finance/article/3320935/hsbc-keep-highest-yield-among-greater-china-regions-banks-jpmorgan-analysts-say?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3320935/hsbc-keep-highest-yield-among-greater-china-regions-banks-jpmorgan-analysts-say?utm_source=rss_feed Wed, 06 Aug 2025 08:00:09 +0000 Alice Li Alice Li China’s central bank confirmed on Friday that it had established a new financial stability committee to defuse the nation’s mounting debt risks, as a senior government adviser suggested that Beijing needed to inject 1 trillion yuan (US$139 billion) into the property sector to stabilise developers’ balance sheets. The suggestion by Yin Zhongli, a counsellor for China’s State Council, comes as Beijing continues to wrestle with a four-year property crisis sparked by developer Evergrande Group’s... https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed Mon, 04 Aug 2025 13:00:07 +0000 Enoch Yiu Enoch Yiu HSBC, the largest banking group in Europe and Hong Kong by assets, expects provisions for bad debt to keep rising this year amid challenges in Hong Kong’s commercial real estate market and potential fallouts from trade tariffs and swings in global interest rates. The UK lender, whose Asian base is in Hong Kong, and its subsidiary Hang Seng Bank, made a combined US$500 million in provisions on offices and retail properties in Hong Kong in the first half, according to its results published on... https://www.scmp.com/business/article/3320086/hsbc-plans-us3-billion-stock-buy-back-after-29-drop-second-quarter-profit?utm_source=rss_feed https://www.scmp.com/business/article/3320086/hsbc-plans-us3-billion-stock-buy-back-after-29-drop-second-quarter-profit?utm_source=rss_feed Wed, 30 Jul 2025 04:49:43 +0000 Enoch Yiu Enoch Yiu The Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, said it had no plans to establish a “bad bank” to absorb troubled debt in the financial system, saying that the local banking sector remained healthy and profitable. “Overall, banks in Hong Kong maintain a healthy balance sheet; their credit risk is manageable and provisions are sufficient,” the authority said in a statement on Thursday. “The HKMA has no intention to set up the rumoured ‘bad bank’. We understand that the... https://www.scmp.com/business/banking-finance/article/3318637/hkma-dismisses-bad-bank-rumours-saying-industry-remains-healthy?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3318637/hkma-dismisses-bad-bank-rumours-saying-industry-remains-healthy?utm_source=rss_feed Thu, 17 Jul 2025 13:32:02 +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 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 Cao Li Cao Li China Vanke sold nearly all of the more than 200 units on offer at its Le Mont project on the first day of sales, despite earlier reports indicating that some Hong Kong banks were refusing to extend mortgages to prospective buyers. By Saturday evening, 223 of the 228 available flats at the new Tai Po residential project developed by Vanke Hong Kong, wholly owned by China Vanke, had been sold, said Sammy Po Siu-ming, CEO of Midland Realty’s residential division. The flats – ranging from 214 sq ft... https://www.scmp.com/business/banking-finance/article/3302511/china-vankes-le-mont-project-tai-po-selling-briskly-despite-mortgage-concerns?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3302511/china-vankes-le-mont-project-tai-po-selling-briskly-despite-mortgage-concerns?utm_source=rss_feed Sat, 15 Mar 2025 07:17:06 +0000 Enoch Yiu Enoch Yiu Beijing will allow Hong Kong and Macau-domiciled banks to launch a range of services on the mainland including credit cards next month, the latest in a series of steps to integrate the financial sectors of China and its two special administrative regions. The National Financial Regulatory Administration (NFRA), an agency under the State Council that oversees the financial sector, said on Thursday that it would lift restrictions that currently prohibit Hong Kong and Macau banks from offering any... https://www.scmp.com/business/banking-finance/article/3299493/beijing-allows-hong-kong-banks-issue-credit-cards-mainland-march-1?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3299493/beijing-allows-hong-kong-banks-issue-credit-cards-mainland-march-1?utm_source=rss_feed Thu, 20 Feb 2025 13:06:35 +0000 Enoch Yiu Enoch Yiu HSBC Holdings said it would invest more resources in Hong Kong’s wealth-management products and services in the coming years, as the city’s biggest commercial bank restructures to cut costs and grow in its largest market in terms of revenue. The 160-year-old bank plans to redeploy US$1.5 billion from “low-return” markets to Hong Kong and other parts of Asia, HSBC’s CEO Georges Elhedery said on Wednesday after unveiling a 2 per cent growth in 2024 net profit. As part of the plan, HSBC has started... https://www.scmp.com/business/banking-finance/article/3299255/hsbc-2024-profit-misses-estimates-ceo-looks-trim-us15-billion-costs-2026?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3299255/hsbc-2024-profit-misses-estimates-ceo-looks-trim-us15-billion-costs-2026?utm_source=rss_feed Wed, 19 Feb 2025 04:35:40 +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 Aileen Chuang Aileen Chuang Hongkongers can now open e-CNY wallets through four Chinese banks in the city and add value via the widely used Faster Payment System (FPS), in a citywide roll-out of a digital yuan pilot that aims to make cross-border retail payments more convenient. The Hong Kong Monetary Authority (HKMA) said on Friday that residents can use their Hong Kong mobile phone numbers to set up e-CNY personal wallets and top up the wallets via FPS through 17 retail banks in Hong Kong – without having to open a... https://www.scmp.com/business/banking-finance/article/3263122/hong-kong-e-cny-pilot-expands-residents-can-open-digital-yuan-wallets-and-top-fps-no-mainland?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3263122/hong-kong-e-cny-pilot-expands-residents-can-open-digital-yuan-wallets-and-top-fps-no-mainland?utm_source=rss_feed Fri, 17 May 2024 12:00:14 +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 Industrial and Commercial Bank of China (ICBC), the nation’s largest lender, reported its first decline in quarterly profit in more than a year as margins continue to contract. Net income fell 2.78 per cent to 87.7 billion yuan (US$12.1 billion) in the first quarter, the bank said in an exchange filing on Monday. Its net interest margin narrowed to 1.48 per cent from 1.61 per cent at the end of 2023. Chinese lenders are in the midst of a prolonged squeeze that has narrowed margins to record... https://www.scmp.com/business/banking-finance/article/3260852/chinas-icbc-agricultural-bank-post-profit-drops-margin-squeeze?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3260852/chinas-icbc-agricultural-bank-post-profit-drops-margin-squeeze?utm_source=rss_feed Tue, 30 Apr 2024 01:40:55 +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’s commercial banks are removing some of their long-term fixed-income products and cutting rates offered to depositors, in an effort to shore up profitability, as challenges, including a slumping property sector, mounting local government debt, and slow consumption recovery, weigh on lenders’ earnings. China Merchants Bank, the country’s seventh-largest bank by asset known for its retail services, said this week that it will stop offering three-year and five-year certificates of deposit... https://www.scmp.com/business/banking-finance/article/3258950/chinas-banks-withdraw-some-long-term-fixed-income-products-cut-deposit-rates-boost-margins?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3258950/chinas-banks-withdraw-some-long-term-fixed-income-products-cut-deposit-rates-boost-margins?utm_source=rss_feed Sun, 14 Apr 2024 06:04:33 +0000 In China’s era of breakneck growth, there were few better jobs to have than one in finance. During those heady days – when the pursuit of money was exalted above all else – bankers’ swanky offices and hefty salaries made them the envy of the masses, a hot commodity in the marriage market and role models for the millions graduating from universities each year. But the boom times seem to be over. For the ones who have remained, the lavish lifestyles they once enjoyed have been replaced with stress... https://www.scmp.com/economy/china-economy/article/3257250/chinas-new-rules-finance-pull-brakes-gravy-train-bringing-greed-good-era-halt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3257250/chinas-new-rules-finance-pull-brakes-gravy-train-bringing-greed-good-era-halt?utm_source=rss_feed Fri, 29 Mar 2024 22:00:23 +0000 Bank of Communications (Bocom), one of China’s top state-owned lenders, delivered a cautiously optimistic outlook for its business and the country’s economy even as it posted its slowest earnings growth since at least 2004. Net profit at the Shanghai-based bank rose 0.7 per cent to 92.7 billion yuan (US$12.8 billion) in 2023, compared with 92.1 billion yuan in 2022, it said in a stock exchange filing on Wednesday, as China’s faltering economy weighed on earnings growth. This beat a consensus... https://www.scmp.com/business/banking-finance/article/3256976/bocom-delivers-more-confident-outlook-after-posting-slight-rise-profits?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3256976/bocom-delivers-more-confident-outlook-after-posting-slight-rise-profits?utm_source=rss_feed Wed, 27 Mar 2024 13:45:28 +0000 Bank of China said it plans to sell up to 150 billion yuan (US$21 billion) of loss-absorbing bonds, becoming the nation’s first big state bank to plug a major funding shortfall before a 2025 deadline to meet global capital requirements. The lender said it plans to tap both domestic and overseas debt markets to sell a new category of total loss-absorbing capacity (TLAC) bonds, according to a Friday filing with the Shanghai Stock Exchange. China’s banking regulator in 2022 allowed the nation’s... https://www.scmp.com/business/banking-finance/article/3250128/bank-china-plans-us21-billion-bond-sales-comply-global-capital-requirements?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3250128/bank-china-plans-us21-billion-bond-sales-comply-global-capital-requirements?utm_source=rss_feed Mon, 29 Jan 2024 06:23:33 +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’s biggest state-owned banks, mired in bad property loans, now face further downward pressure on profit as they prepare to respond to Beijing’s call to cut mortgage rates and revive the country’s faltering property market. Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) cut their deposit rates by between five and 25 basis points, according to their websites. China Construction Bank (CCB), the world’s third-largest bank by assets, said on Thursday that it... https://www.scmp.com/business/banking-finance/article/3233026/chinas-state-banks-face-profit-squeeze-they-comply-beijings-call-mortgage-rate-cuts-aid-property?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3233026/chinas-state-banks-face-profit-squeeze-they-comply-beijings-call-mortgage-rate-cuts-aid-property?utm_source=rss_feed Fri, 01 Sep 2023 02:00:44 +0000 Several Chinese banks have made pledges to cut mortgage rates, answering Beijing’s call to make homes more affordable and help arrest a multi-month slump in the nation’s housing market, according to various reports, a move which analysts said will have a big impact on lenders’ net interest margins. The pledges follow the central bank’s indication it would guide commercial banks to adjust existing mortgage rates in its quarterly monetary policy report, which analysts interpreted as a sign that... https://www.scmp.com/business/article/3232787/chinas-bank-communications-initiate-mortgage-rate-cut-hewing-push-make-first-homes-more-affordable?utm_source=rss_feed https://www.scmp.com/business/article/3232787/chinas-bank-communications-initiate-mortgage-rate-cut-hewing-push-make-first-homes-more-affordable?utm_source=rss_feed Wed, 30 Aug 2023 04:59:53 +0000 Two major Chinese banks reported a growing number of non-performing loans (NPLs) on their books in the first half of the year as China’s worsening property-market crisis puts increasing strain on lenders. Both Bank of Communications, China’s sixth-largest commercial bank in terms of assets, and China Merchants Bank reported rising NPLs, joining China Construction Bank (CCB) and Bank of East Asia, which issued similar reports on Thursday. Bank of Communications on Friday evening reported its NPLs... https://www.scmp.com/business/banking-finance/article/3232367/bank-communications-china-merchants-bank-report-increasing-bad-loans-amid-property-crisis?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3232367/bank-communications-china-merchants-bank-report-increasing-bad-loans-amid-property-crisis?utm_source=rss_feed Fri, 25 Aug 2023 13:23:42 +0000 China kicks off its annual World Artificial Intelligence Conference (WAIC) in Shanghai this week in a showcase of Beijing’s AI ambitions amid a deepening technological rivalry with the US. The annual event, which is hosted by several government ministries, has attracted China’s top AI firms and institutions. The published agenda that runs from Thursday to Saturday is dominated by local firms and speakers, with some big international names conspicuously missing. Most notably, Microsoft-backed... https://www.scmp.com/tech/tech-trends/article/3226429/chinas-biggest-ai-conference-kicks-week-qualcomm-sole-us-sponsor-amid-escalating-tech-rivalry?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3226429/chinas-biggest-ai-conference-kicks-week-qualcomm-sole-us-sponsor-amid-escalating-tech-rivalry?utm_source=rss_feed Mon, 03 Jul 2023 13:32:17 +0000 Creditors continued selling tycoon Chen Hongtian’s assets in Hong Kong on Tuesday. A HK$680 million (US$86.72 million) flat he owned in Opus Hong Kong in eastern Mid-Levels has been put up for sale by tender by the receivers, according to a statement by Savills, which said it had been appointed the sole agent for the deal. Chen and his wife, Chen Yao Li Ni, bought the fifth-floor flat on 53 Stubbs Road for HK$387 million in September 2015, according to official records. In February, the flat was... https://www.scmp.com/business/article/3219966/creditors-put-tycoon-chen-hongtians-us86-million-frank-gehry-designed-hong-kong-flat-sale?utm_source=rss_feed https://www.scmp.com/business/article/3219966/creditors-put-tycoon-chen-hongtians-us86-million-frank-gehry-designed-hong-kong-flat-sale?utm_source=rss_feed Tue, 09 May 2023 12:31:29 +0000 Chinese tycoon Chen Hongtian is in discussions with lenders to retrieve assets worth HK$10 billion (US$1.27 billion) after a “short-term liquidity issue” forced him to miss mortgage payments. There are plans to inject fresh funds to resolve the “mild default” issue related to three properties, including a HK$2.1 billion house on The Peak, said the chairman of Cheung Kei Group, which owns offices, hotels and finance firms in Hong Kong. “We’re in talks with the banks about repayment arrangements... https://www.scmp.com/business/china-business/article/3219492/chinese-tycoon-chen-hongtian-talks-banks-resolve-mild-mortgage-defaults-hong-kong-property-worth?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3219492/chinese-tycoon-chen-hongtian-talks-banks-resolve-mild-mortgage-defaults-hong-kong-property-worth?utm_source=rss_feed Fri, 05 May 2023 09:45:08 +0000 Chinese lenders largely shrugged off the recent banking crisis in developed markets, gaining in value to take the top five spots in a league table of banks in the Asia-Pacific region ranked by market capitalisation. Five of the eight Chinese banks to make the top 20 list compiled by S&P Global Market Intelligence enjoyed a quarterly increase in market value in the first three months of 2023, bucking the trend across the region. Industrial and Commercial Bank of China topped the table, having... https://www.scmp.com/business/banking-finance/article/3216358/chinese-lenders-shrug-global-banking-turmoil-gaining-value-top-sp-regional-market-cap-league-table?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3216358/chinese-lenders-shrug-global-banking-turmoil-gaining-value-top-sp-regional-market-cap-league-table?utm_source=rss_feed Fri, 07 Apr 2023 15:00:08 +0000 China’s banking sector could be in for a challenging year ahead as interest rates continue to drop and competition for good depositors intensifies. Executives warned of downward pressure and analysts predict a gloomy outlook for the industry. Last week major banks reported declining net interest margins, a crucial measure of their profitability. China Construction Bank, for example, recorded a margin of 2.02 per cent in 2022, the lowest since 2018. “The senior management are taking the decline... https://www.scmp.com/business/banking-finance/article/3215854/chinese-banks-brace-tough-year-low-interest-rates-property-crisis-hit-profitability?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3215854/chinese-banks-brace-tough-year-low-interest-rates-property-crisis-hit-profitability?utm_source=rss_feed Mon, 03 Apr 2023 23:30:11 +0000 Chinese tycoon Chen Hongtian’s company has blamed a “short-term cash-flow disruption” after three of his properties in Hong Kong, including a house on The Peak that he bought for HK$2.1 billion (US$268 million) in 2016, were taken over by creditors. “I hope that the public will further understand the correct information,” Chen told the Post on Friday, breaking his silence over the seizure of three of his assets in the city. “Chen Hongtian’s three core properties in Hong Kong are worth about... https://www.scmp.com/business/article/3215608/tycoon-chen-hongtian-blames-short-term-cash-flow-disruption-seizure-hong-kong-properties-including?utm_source=rss_feed https://www.scmp.com/business/article/3215608/tycoon-chen-hongtian-blames-short-term-cash-flow-disruption-seizure-hong-kong-properties-including?utm_source=rss_feed Fri, 31 Mar 2023 12:15:10 +0000 Chen Hongtian, a low-profile mainland Chinese tycoon, who was the talk of the town in Hong Kong for purchasing a house on The Peak for a record price almost seven years ago, has had at least three of his assets worth a total of about HK$7 billion (US$891.7 million) at time of purchase seized by lenders. The house, a 9,212 sq ft property at 15 Gough Hill Road, was seized this month by receivers appointed by Bank of East Asia (BEA), according to government records. Chen bought it through Lambda... https://www.scmp.com/business/article/3215389/chinese-tycoon-chen-hongtian-has-hong-kong-property-includes-peak-house-seized-lenders?utm_source=rss_feed https://www.scmp.com/business/article/3215389/chinese-tycoon-chen-hongtian-has-hong-kong-property-includes-peak-house-seized-lenders?utm_source=rss_feed Thu, 30 Mar 2023 08:35:24 +0000 The shares of Chinese securities firms have slumped in Hong Kong ahead of their earnings announcements for 2022 amid expectations of record losses following a slump in their incomes due to market volatility last year, as well as impairment losses generated by debt investments and loans to sectors such as property. The shares of Hong Kong-listed Bocom International Holdings have slumped by 23.8 per cent so far in March, after declining 3.1 per cent on Monday, according to Bloomberg data. Haitong... https://www.scmp.com/business/article/3214980/shares-bocom-international-haitong-slump-after-chinese-securities-firms-warn-losses-2022-forecasts?utm_source=rss_feed https://www.scmp.com/business/article/3214980/shares-bocom-international-haitong-slump-after-chinese-securities-firms-warn-losses-2022-forecasts?utm_source=rss_feed Mon, 27 Mar 2023 09:00:55 +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 China’s slowing economy and its stringent zero-Covid policy will prove challenging for banks to prevent loan quality from worsening in the second half, said senior executives of Industrial and Commercial Bank of China (ICBC). While the non-performing loan (NPL) ratio for ICBC has remained largely stable over the past 12 months, the impact of China’s strict zero-Covid measures will weigh on corporate borrowers from different sectors, said Wang Jingwu, senior executive vice-president and chief... https://www.scmp.com/business/banking-finance/article/3190743/icbc-sees-tough-challenges-curbing-bad-loans-chinas-strict?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3190743/icbc-sees-tough-challenges-curbing-bad-loans-chinas-strict?utm_source=rss_feed Tue, 30 Aug 2022 22:15:24 +0000 Two Chinese state-owned banks said this week that their first-half earnings were largely unhurt by the country’s Covid-19 lockdown measures, but more challenges are in store, with the Bank of Communications (Bocom) warning about a potential rise in sour debt from credit card customers in the second half. Due to the economic impact of Covid-19 restrictions on some of its retail borrowers, Shanghai-based Bocom has granted payment extensions worth 2.7 billion yuan (US$393.4 million) to some of its... https://www.scmp.com/business/banking-finance/article/3190359/bank-communications-first-half-earnings-survive-chinas?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3190359/bank-communications-first-half-earnings-survive-chinas?utm_source=rss_feed Sat, 27 Aug 2022 00:00:30 +0000