https://www.scmp.com/rss/48698/feed Founded in 1954 as the People’s Construction Bank of China, China Construction Bank is one of the 'big four' banks in the People's Republic of China. The other three are Industrial and Commercial Bank of China, Bank of China and Agricultural Bank of China. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Xinyi Wu Xinyi Wu Several major Chinese banks have clawed back staff bonuses or cut salaries amid a sluggish economic recovery and Beijing’s ongoing scrutiny of the financial sector. In their annual reports, an increasing number of lenders, ranging from state-owned institutions to commercial banks, are disclosing the amount of performance-based compensation reclaimed from their employees last year. State-owned Bank of China recovered 47.18 million yuan (US$6.9 million) from 4,630 individuals in 2025, according to... https://www.scmp.com/economy/china-economy/article/3349497/more-chinese-banks-claw-back-bonuses-cut-salaries-despite-mixed-profit-recovery?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3349497/more-chinese-banks-claw-back-bonuses-cut-salaries-despite-mixed-profit-recovery?utm_source=rss_feed Thu, 09 Apr 2026 07:00:43 +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 As conflict in the Middle East pushes oil beyond US$100 per barrel, Angola and other African producers are in line to be among the main beneficiaries. On Thursday, following renewed tanker attacks, Brent crude oil prices surged back past US$100 a barrel, having reached a peak of US$119.50 on Monday, the highest level since 2022. The closure of the Strait of Hormuz, a key maritime chokepoint through which about 20 million barrels of oil and petroleum products flowed daily, has crippled energy... https://www.scmp.com/news/china/diplomacy/article/3346457/how-middle-east-conflict-and-soaring-oil-prices-will-affect-angolas-chinese-debt-deals?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3346457/how-middle-east-conflict-and-soaring-oil-prices-will-affect-angolas-chinese-debt-deals?utm_source=rss_feed Fri, 13 Mar 2026 06:00:14 +0000 Zhu Wenqian Zhu Wenqian In a move to bolster the stability of the property market, Shanghai unveiled a plan to buy second-hand homes for use as public rental housing, with the move timed to coincide with the opening of the city’s annual “two sessions” meetings. With the official launch of a pilot programme on Monday, the city aims to meet rental demand from young residents including college students and new urban arrivals. The initiative will roll out first in the downtown districts of Pudong, Jing’an and Xuhui. Backed... https://www.scmp.com/business/article/3342204/shanghai-buy-second-hand-homes-rental-housing-pilot-support-property-market?utm_source=rss_feed https://www.scmp.com/business/article/3342204/shanghai-buy-second-hand-homes-rental-housing-pilot-support-property-market?utm_source=rss_feed Tue, 03 Feb 2026 06:45:34 +0000 Julie Zhang,Themis Qi Julie Zhang,Themis Qi Another gold fund in mainland China suspended new investments as precious metals extended a plunge on Monday, heightening dilemmas for investors. The Harvest Gold Securities Investment Fund, a listed open-ended fund (LOF) investing in gold-related products, said it would suspend new investments from Tuesday until further notice. The fund manager said it aimed to ensure stable operation and protect the interests of unit holders. On Wednesday, E Fund Management’s E Fund Gold Theme LOF also closed... https://www.scmp.com/business/banking-finance/article/3342079/gut-check-time-how-chinese-gold-and-silver-investors-assess-metals-volatility?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3342079/gut-check-time-how-chinese-gold-and-silver-investors-assess-metals-volatility?utm_source=rss_feed Mon, 02 Feb 2026 08:30:13 +0000 Jevans Nyabiage Jevans Nyabiage Chinese lending to Africa dropped by nearly half to US$2.1 billion in 2024 compared with the previous year, according to a new report. The decline formed part of a decade-long trend. Lending had been on an upward trajectory since 2006 and peaked between 2012 and 2018 – a period that saw the launch of the Belt and Road Initiative – when it passed the US$10 billion mark each year. At its height in 2016, Beijing lent US$28.8 billion. But since 2020, the annual total has not crossed the US$5 billion... https://www.scmp.com/news/china/diplomacy/article/3341213/chinese-lending-africa-nearly-halves-year-priorities-shift-smaller-projects?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3341213/chinese-lending-africa-nearly-halves-year-priorities-shift-smaller-projects?utm_source=rss_feed Mon, 26 Jan 2026 06:00:17 +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 Aileen Chuang Aileen Chuang JD.com has agreed to acquire a stake in a major office tower in Hong Kong’s Central district, mirroring a property move by its rival Alibaba Group Holding and offering a financial lift to the cash-strapped developer Lai Sun Development. Lai Sun Development and its parent Lai Sun Garment entered into an agreement with Jasmine Investment Development IV Limited, an investment entity of JD.com, to sell its 50 per cent stake in the China Construction Bank Tower for HK$3.5 billion (US$450 million),... https://www.scmp.com/business/banking-finance/article/3335846/jdcom-buys-hong-kong-central-tower-lai-sun-offloads-us450-billion-stake?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3335846/jdcom-buys-hong-kong-central-tower-lai-sun-offloads-us450-billion-stake?utm_source=rss_feed Wed, 10 Dec 2025 05:30:09 +0000 Enoch Yiu Enoch Yiu Mainland Chinese customers enjoy the best mobile banking apps in Asia, but banks across the region still lag behind their Western counterparts when it comes to a great mobile experience, according to a global study. Three mainland lenders – Ping An Pocket Bank, China Merchant Bank (CMB) and Industrial and Commercial Bank of China (ICBC) – swept the top three positions in Asia in the ranking by Sia, an international management consulting firm. The firm’s Mobile Banking Benchmark assessed 137 apps... https://www.scmp.com/business/article/3335336/mainland-chinas-bank-apps-best-asia-beating-hong-kong-and-singapore-study-says?utm_source=rss_feed https://www.scmp.com/business/article/3335336/mainland-chinas-bank-apps-best-asia-beating-hong-kong-and-singapore-study-says?utm_source=rss_feed Sun, 07 Dec 2025 01:30:18 +0000 Aileen Chuang Aileen Chuang Hong Kong’s de facto central bank has begun facilitating real-value transactions using tokenised deposits and digital assets under a controlled pilot programme from Thursday, reinforcing the city’s status as a fintech hub. The new phase of the Project Ensemble sandbox would enable seven commercial banks and 13 industry participants to settle tokenised transactions “faster, more transparently and efficiently”, the Hong Kong Monetary Authority (HKMA) said in a press release on Thursday. The... https://www.scmp.com/business/banking-finance/article/3332625/hong-kong-moves-theory-practice-real-value-tokenised-money-asset-deals?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3332625/hong-kong-moves-theory-practice-real-value-tokenised-money-asset-deals?utm_source=rss_feed Thu, 13 Nov 2025 10:00:58 +0000 He Huifeng He Huifeng At the ongoing autumn edition of the Canton Fair in Guangzhou – China’s oldest and largest trade exhibition – Chinese exporters are noticing a quietly spreading shift: an increasing number of overseas clients, particularly from emerging markets such as Southeast Asia, Central Asia and Africa, are proactively proposing to settle trade orders in yuan. Wang Lilin, sales director at diesel generator manufacturer Keypower, said the company had seen a clear rise in yuan settlements over the past two... https://www.scmp.com/economy/global-economy/article/3329752/chinas-canton-fair-exporters-sense-warming-trend-yuan-settlements?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3329752/chinas-canton-fair-exporters-sense-warming-trend-yuan-settlements?utm_source=rss_feed Tue, 21 Oct 2025 05:29:43 +0000 Enoch Yiu Enoch Yiu Hong Kong note-issuing banks HSBC and Standard Chartered on Monday completed trades at the launch of the city’s cross-boundary bond repurchase (repo) scheme, according to the two lenders. The cross-boundary bond repo business was launched by the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China, alongside other mainland authorities, as the latest initiative to enhance the Bond Connect scheme, which would encourage more international investors to trade in yuan-denominated... https://www.scmp.com/business/banking-finance/article/3327276/hsbc-standard-chartered-complete-first-yuan-repo-under-new-scheme?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3327276/hsbc-standard-chartered-complete-first-yuan-repo-under-new-scheme?utm_source=rss_feed Mon, 29 Sep 2025 13:30:09 +0000 Aileen Chuang Aileen Chuang The US$15 trillion Eurobond market could offer Chinese issuers a gateway to international investors and greater flexibility as their funding needs grow, according to executives at clearing house Euroclear. The Eurobond market, the world’s third-largest debt market after the US and China, allows companies and governments to raise capital outside their home markets and currencies, without necessarily being tied to Europe or the euro. “The Eurobond market is highly international and flexible,... https://www.scmp.com/business/banking-finance/article/3326971/eurobonds-us15-trillion-market-offers-chinese-issuers-path-global-investors?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3326971/eurobonds-us15-trillion-market-offers-chinese-issuers-path-global-investors?utm_source=rss_feed Sun, 28 Sep 2025 23:30:12 +0000 Cao Li Cao Li China’s banks are edging towards their “Japanification moment”, as years of yielding margins to support the economy have “left the system thin on profitability and more exposed to credit shocks”, according to a new report by S&P Global Ratings. Japanification is characterised by a prolonged period of low growth and weak profitability, similar to the state of Japan's economy after the country's asset bubble burst in the early 1990s. While other banking systems had weathered ultra-low rates by... https://www.scmp.com/business/banking-finance/article/3326841/chinas-banks-face-their-japanification-moment-sp-report-warns?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3326841/chinas-banks-face-their-japanification-moment-sp-report-warns?utm_source=rss_feed Thu, 25 Sep 2025 09:30:12 +0000 Aileen Chuang Aileen Chuang Foreign buying of Chinese stocks continued for a third month in August, albeit at a slower pace, as long-only funds increased their exposure to the mainland’s US$12.3 trillion stock market following a key benchmark’s rise to a 10-year high. Inflows from US and European funds into Chinese equities eased to US$900 million in August from US$2.7 billion in July, according to a Morgan Stanley report on Thursday. Passive funds logged inflows of US$1.4 billion. Meanwhile, active funds recorded outflows... https://www.scmp.com/business/markets/article/3324471/foreign-fund-flows-chinese-equities-lose-steam-even-stocks-hit-10-year-high?utm_source=rss_feed https://www.scmp.com/business/markets/article/3324471/foreign-fund-flows-chinese-equities-lose-steam-even-stocks-hit-10-year-high?utm_source=rss_feed Fri, 05 Sep 2025 08:30:14 +0000 Xinyi Wu Xinyi Wu China is mulling the application of its digital yuan – the central bank-backed currency also known as the e-CNY – to tackle persistent payment defaults, a move that would broaden the asset’s scope beyond the set of use cases explored by Beijing since the currency’s launch in 2019. Authorities in the central province of Hunan touched upon the subject when detailing plans to expand the digital currency’s application scenarios and scale, according to a document published last month. Hunan will... https://www.scmp.com/economy/china-economy/article/3324361/chinese-province-floats-new-use-digital-yuan-paying-long-delayed-debts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324361/chinese-province-floats-new-use-digital-yuan-paying-long-delayed-debts?utm_source=rss_feed Fri, 05 Sep 2025 01:00:12 +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 Ann Cao Ann Cao Alibaba Group Holding and Standard Chartered have entered a deal in which the Chinese technology giant’s artificial intelligence systems would be deployed across the operations of the British multinational bank. The two companies signed a memorandum of understanding that would see Standard Chartered leverage solutions from Alibaba Cloud – the Hangzhou-based firm’s AI and cloud computing services arm – to enhance operational efficiency and elevate customer experience, according to a statement on... https://www.scmp.com/tech/big-tech/article/3320031/alibaba-standard-chartered-partner-accelerate-ai-adoption-banking-sector?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3320031/alibaba-standard-chartered-partner-accelerate-ai-adoption-banking-sector?utm_source=rss_feed Tue, 29 Jul 2025 13:30:11 +0000 Yulu Ao Yulu Ao Hong Kong stocks rose from a one-week low as mainland funds ploughed more money into the city’s assets on optimism that Beijing will push for high-quality growth and rein in excessive price competition in some industries. The Hang Seng Index gained 0.6 per cent to 24,221.41 on Wednesday, from the level on Monday. Markets were closed on Tuesday for a holiday. The Hang Seng Tech Index declined 0.6 per cent. On the mainland, the Shanghai Composite Index weakened 0.1 per cent and the CSI 300 Index... https://www.scmp.com/business/china-business/article/3316575/hong-kong-stocks-rise-mainland-fund-purchases-beijing-growth-pledge?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3316575/hong-kong-stocks-rise-mainland-fund-purchases-beijing-growth-pledge?utm_source=rss_feed Wed, 02 Jul 2025 02:53:35 +0000 Cao Li Cao Li The rally in Chinese bank stocks is captivating retail investors from Hong Kong to Shanghai and Shenzhen, making it one of the hottest topics on mainland social media platforms, with many asking if it is too late to jump on the bandwagon. Benchmarks tracking Industrial & Commercial Banking Corp (ICBC), China Construction Bank (CCB), Bank of China and their peers have risen 24 per cent in Hong Kong and 17 per cent in onshore markets. The market-beating gains are even more spectacular, coming... https://www.scmp.com/business/banking-finance/article/3315298/chinese-banks-stock-rally-lights-social-media-fomo-grips-investors?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3315298/chinese-banks-stock-rally-lights-social-media-fomo-grips-investors?utm_source=rss_feed Mon, 23 Jun 2025 00:30:11 +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 Yulu Ao Mainland Chinese households are sitting on 160 trillion yuan (US$22 trillion) in cash, mostly stashed away in bank time deposits, and about a third of it could flow into stock markets in Hong Kong and elsewhere as lower interest rates fuel demand for riskier assets, according to HSBC. Some 50 trillion yuan, deemed excess savings over the pandemic years – an amount beyond retirement needs – could soon find its way back into local and offshore equity markets as Chinese households replenish their... https://www.scmp.com/business/china-business/article/3312751/chinese-households-set-buy-another-us100-billion-hong-kong-stocks-hsbc-says?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3312751/chinese-households-set-buy-another-us100-billion-hong-kong-stocks-hsbc-says?utm_source=rss_feed Mon, 02 Jun 2025 10:30:08 +0000 Jess Ma Jess Ma A mainland Chinese bank in Hong Kong is investigating unauthorised transactions on the Faster Payment System (FPS) involving one of its clients, the Post has learned, with experts saying breaches on the widely used platform are uncommon and may involve hacking. A client of the China Construction Bank (Asia) in Hong Kong told the Post she had never used FPS but lost HK$20,000 (US$2,560) in two unauthorised transactions via the platform to an account with Ant Bank under a mainland name on April... https://www.scmp.com/news/hong-kong/society/article/3310767/bank-hong-kong-investigates-unauthorised-transactions-payment-system-fps?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3310767/bank-hong-kong-investigates-unauthorised-transactions-payment-system-fps?utm_source=rss_feed Sun, 18 May 2025 03:11:27 +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 Zhang Shidong Zhang Shidong Top Chinese banks rose after the mainland’s securities regulator urged listed companies to do more to bolster stock prices and improve shareholder returns. An index of 42 banks listed on the Shanghai and Shenzhen exchanges gained more than 2 per cent on Monday, according to financial data provider Shanghai DZH. Industrial and Commercial Bank of China (ICBC), Bank of China and China Construction Bank, the biggest state-backed lenders, advanced at least 2.9 per cent in Hong Kong, outperforming the... https://www.scmp.com/business/china-business/article/3287044/chinese-banks-surge-csrc-guideline-urging-more-shareholder-returns-lifts-confidence?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3287044/chinese-banks-surge-csrc-guideline-urging-more-shareholder-returns-lifts-confidence?utm_source=rss_feed Mon, 18 Nov 2024 09:30:08 +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 Zhang Shidong Zhang Shidong Chinese banks are defying the downturn on the broader market this year, with the share in the biggest state-owned commercial lenders rising to multi-year highs as dividend payouts yield more than government bonds and optimism builds that net-interest margins are stabilising. The 42 mainland-listed banks have gained 19 per cent on average since the start of 2024, according to financial data provider Shanghai DZH. That trounces a 4.2 per cent decline in the benchmark CSI 300 Index in the... https://www.scmp.com/business/china-business/article/3276230/chinese-banks-buoyant-amid-market-tumult-stock-investors-hunt-dividend-yields?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3276230/chinese-banks-buoyant-amid-market-tumult-stock-investors-hunt-dividend-yields?utm_source=rss_feed Wed, 28 Aug 2024 08:00:17 +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 Dexin China Holdings has joined the growing list of troubled Chinese property developers facing liquidation as impatient creditors take them to court in an attempt to claw back the money they are owed. The Zhejiang-based developer received a winding-up order from a Hong Kong court on Tuesday, Bloomberg reported. China Construction Bank (Asia), the trustee of Dexin’s bondholders, filed the petition three months ago as it sought repayment of a note worth US$350 million plus interest that was due... https://www.scmp.com/business/china-business/article/3266184/china-property-crisis-dexin-joins-list-developers-ordered-liquidate-hong-kong?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3266184/china-property-crisis-dexin-joins-list-developers-ordered-liquidate-hong-kong?utm_source=rss_feed Tue, 11 Jun 2024 11:30:14 +0000 Temasek Holdings, Singapore’s sovereign wealth fund, cut its stake in the Industrial and Commercial Bank of China (ICBC) twice in one day last week, reducing its share of the lender to less than 5 per cent. The state investor first trimmed its allocation in China’s biggest bank by selling 825 million H-shares at an average price of HK$4.7 each on May 27, taking its stake from 6.01 per cent to 5.06 per cent, AA Stocks reported on Tuesday. This was followed by a further cut of HK$408 million on... https://www.scmp.com/business/banking-finance/article/3265393/singapores-temasek-trims-stake-icbc-chinas-slumping-property-market-dents-state-lenders-profits?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3265393/singapores-temasek-trims-stake-icbc-chinas-slumping-property-market-dents-state-lenders-profits?utm_source=rss_feed Tue, 04 Jun 2024 15:09:48 +0000 Soon after buying Inter Milan in 2016, Chinese retail billionaire Zhang Jindong installed his 24-year-old son to help run one of the most famous football teams in Italy. Zhang Kangyang – who also goes by Steven – embraced his new role. A former mergers and acquisitions analyst at Morgan Stanley, he was soon to be seen driving a Pagani Huayra BC sports car, worth more than US$3 million, around the streets of Milan. On the spoiler were the words Nerazzurra – blue and black – referring to the... https://www.scmp.com/sport/football/article/3264728/italian-series-club-inter-milan-was-plaything-billionaire-zhang-jindong-and-son-steven-then-money?utm_source=rss_feed https://www.scmp.com/sport/football/article/3264728/italian-series-club-inter-milan-was-plaything-billionaire-zhang-jindong-and-son-steven-then-money?utm_source=rss_feed Thu, 30 May 2024 14:00:10 +0000 A managing director of a major mainland Chinese bank in Hong Kong has been sued for alleged sexual harassment by a woman subordinate who claims she was forced to quit her job the same day she was told she was to be laid off because of her “poor sales performance”. Alan Lai King-lun, head of transaction banking at China Construction Bank (Asia), is alleged to have groped the woman seven times over a 2½ month period after he became her supervisor in February last year. A writ lodged with the... https://www.scmp.com/news/hong-kong/law-and-crime/article/3263393/managing-director-major-mainland-chinese-bank-hong-kong-sued-ex-employee-sexual-harassment?utm_source=rss_feed https://www.scmp.com/news/hong-kong/law-and-crime/article/3263393/managing-director-major-mainland-chinese-bank-hong-kong-sued-ex-employee-sexual-harassment?utm_source=rss_feed Mon, 20 May 2024 11:31:57 +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 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 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 Leading Chinese banks have injected billions of yuan into housing projects with the aim of financing the completion of pre-sold but yet-to-be-completed homes across the country, according to figures released by the lenders. The initiative, which falls under the so-called whitelist mechanism, is part of Beijing’s efforts to revive a weakening property sector that accounts for a quarter of China’s gross domestic product. China Construction Bank (CCB), one of the largest state-owned commercial... https://www.scmp.com/business/china-business/article/3251852/ccb-boc-and-china-everbright-among-chinese-lenders-have-injected-billions-whitelist-housing-projects?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3251852/ccb-boc-and-china-everbright-among-chinese-lenders-have-injected-billions-whitelist-housing-projects?utm_source=rss_feed Tue, 13 Feb 2024 11:30:24 +0000 As China ushers in the Year of the Dragon, some of the US$450 million of commemorative coins and banknotes issued by the nation’s central bank have found their way into the popular local e-commerce platforms at more than three times their face value. On Alibaba Group’s Taobao site, a reseller known as Ji Le Professional Coin Collector is asking 748 yuan for a batch of 10 pieces of banknotes denominated in 20 yuan each. A batch of 10 notes bearing consecutive serial numbers is listed at 800 yuan.... https://www.scmp.com/business/banking-finance/article/3251560/year-dragon-chinas-commemorative-coins-notes-are-multiplying-value-taobao-jdcom-auction-platforms?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3251560/year-dragon-chinas-commemorative-coins-notes-are-multiplying-value-taobao-jdcom-auction-platforms?utm_source=rss_feed Sun, 11 Feb 2024 02:00:45 +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 The value of China’s top 100 storied brands stretching from liquor to commercial banks dropped 4.5 per cent in 2023, battered by weak consumer sentiment and a gloomy economic outlook, according to the latest research by the Hurun Report. The consultancy known for its China Rich List found that the intangible assets of the mainland’s 100 most successful indigenous brands with at least 60 years of history were valued at a combined 9.43 trillion yuan (US$1.32 trillion) in 2023, compared to 9.87... https://www.scmp.com/business/china-business/article/3246069/chinas-top-100-storied-brands-lose-45-cent-their-intangible-assets-value-economic-downturn-weakens?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3246069/chinas-top-100-storied-brands-lose-45-cent-their-intangible-assets-value-economic-downturn-weakens?utm_source=rss_feed Sat, 23 Dec 2023 04:30:13 +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 banks have seen an influx of bad assets in their once-thriving property-loan business, and more could be reported amid the restructuring of Evergrande and other struggling developers. The outstanding property-related non-performing loans (NPLs) of China’s top banks saw an annual increase in value of 37 per cent to 291 billion yuan (US$40 billion) from July 2022 to the end of June this year, according to the Post’s calculations of their midyear financial reports. Two-thirds of the banks... https://www.scmp.com/economy/china-economy/article/3236152/chinas-property-woes-deepened-evergrande-test-beijings-bottom-line-no-systemic-risks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3236152/chinas-property-woes-deepened-evergrande-test-beijings-bottom-line-no-systemic-risks?utm_source=rss_feed Thu, 28 Sep 2023 15:00:19 +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