INFUSIONS INTO WEAKER BANKS HEIGHTEN INVESTOR APPEAL
Dec 11, 2006
A Chinese regulator announced late last month that the government will put more capital into Chinas weaker banks C a move that will make those banks more attractive to foreign investors, experts say. Capital injections are necessary because the banks are weak on almost all financial parameters. Read more....
LOCAL CURRENCY BIZ TO HELP FOREIGN BANKS MOVE WEST
Dec 11, 2006 Foreign banks in China are now restricted to taking yuan deposits from Chinese corporations in 25 cities, mainly on the east coast. However, after today, all geographical restrictions on yuan deposits from corporations will be lifted, and banks will be able to take yuan deposits from Chinese individuals for the first time C in line with World Trade Organization requirements, and giving foreign banks another incentive to move inland. Read more....
CHINAS REGULATORS TO EXPAND QFII PROGRAM (Dec 11, 2006) Chinas top securities regulator said that foreign investment quotas will be expanded and analysts predict that the total allowed for foreign institutional investors could go from just under US$8 billion to US$40 billion in the next three years. Read more....
LOAN-TO-DEPOSIT RULE TO CONSTRAIN LENDING Dec 04, 2006 Maintaining a loan-to-deposit ratio requirement of 75% will constrain locally incorporated foreign banks from lending, experts agree. The challenges for foreign banks are expected even as Chinese banking authorities have changed draft regulations to give them a five-year grace period to comply with the requirement. Read more....
EXPERTS CAUTION FOREIGN FIRMS AHEAD OF BAND WIDENING (Dec 04, 2006) Foreign corporations in China will need to monitor exposure to currency fluctuations more closely when China increases the daily trading band on the yuan against the U.S. dollar. Read more....
EXPERTS PUSH FOR STRONGER BOND MARKET Nov 27, 2006 China is over-dependent on bank financing and needs to develop a better bond market, according to experts, even as a new report released this month by the Asian Development Bank shows Chinas bond market increased 22% for the first half of 2006. Read more....
PANDA BONDS TO BOLSTER CHINAS MARKET Nov 27, 2006 Panda bonds C bonds issued by foreign organizations locally C will help expand Chinas domestic commercial bond market as it is forecasted to grow by as much as 20% a year for the next decade, according to a new Goldman Sachs report issued Tuesday. Read more....
CHINA GETS SET FOR NEXT WAVE OF ASSET SECURITIZATIONS (Nov 27, 2006) China is set to allow its banks to partake in a second wave of asset securitizations by year-end, but it is still too early for foreign investors to get involved, experts say. Read more....
MAJOR CHINESE BANKS TO PARTNER WITH FOREIGN FIRMS Nov 20, 2006 Bank of China and Agricultural Bank of China will soon join the ranks of local banks that have formed asset management companies with foreign partners. Read more....
VENTURE CAPITAL INVESTMENT IN CHINA LEAPS (Nov 20, 2006) Chinas high gross domestic product growth rate, its fast-growing consumer market, and regulatory changes that are simplifying exit strategies for successful companies, are all contributing to the strong rise in venture capital in the worlds fastest growing economy, according to Bobby Chao, managing director of Silicon Valley-based VC firm DFJ DragonFund. Read more....
EXPERTS: FEAR OF FOREIGN COMPETITION OBSTRUCTS PROGRESS Nov 20, 2006 Fear of foreign competition is the main reason Chinas regulators continue to block foreign brokerages from fully participating in the Chinese securities market, experts say. Read more....
STRONG DEMAND EXPECTED FOR CURRENCY-BASED DERIVATIVES Nov 13, 2006 Chinese companies need yuan-based derivatives and China should create a yuan forwards market to meet that need, said vice finance minister Lou Jiwei earlier this month at a financial conference in Beijing promoting the 2007 China Industrial Development report. Read more....
SHORT SELLING OF BONDS EXPECTED TO IMPROVE LIQUIDITY Nov 13, 2006 Chinese institutional investors will be able to short sell bonds starting Nov.20, Chinas central bank announced early last week. The goal is to improve liquidity in the bond market and to give participants ways to hedge against the risk of falling bond prices, the bank said. Read more....
WTO CHANGES TO SPUR BIFURCATION IN BANKING INDUSTRY (Nov 13, 2006) Commercial banks in China will divide into two groups after the sectors World Trade Organization-mandated opening. Experts expect a divide into a group offering high-end services to affluent customers, and a larger group serving the masses. Read more....
SINGAPORE TO OFFER CHINA FUTURES DESPITE LAWSUIT, FINES Nov 06, 2006 The producers of a futures contract based on an index of Chinas top 50 stocks will continue selling the product on the Singapore Exchange despite losing a lawsuit Tuesday and receiving US$20,000 in fines. Read more....
CHINAS REMOVAL OF CORRUPT OFFICIALS PAVES NEW BIZ ROUTE Nov 06, 2006 In the first eight months of 2006, more than 17,000 Chinese officials were prosecuted and punished for corruption relating to banking funds and other government controlled financing, according to the Supreme People's Procuratorate. But the corruption probe that is making the biggest waves is that of the pension fund scandal that recently brought down Shanghais Communist Party chief, Chen Liangyu, and a number of associated figures. Read more....
CHINESE PENSION FUND PICKS FOREIGN FIRMS AS MANAGERS Nov 06, 2006 Chinas National Social Security Fund (NSSF) has selected foreign firms to manage its US$1 billon pension fund assets in overseas markets, according to a source close to the deal. Read more....
CHINA TO SECURITIZE BAD BANK DEBTS Oct 30, 2006 China will begin securitizing its bad bank debts, a manager at one of Chinas two top asset management companies told China Finance & Currency week on Friday. Read more....
NEW FUTURES EXCHANGE RULES TO KEEP OUT SMALL INVESTORS Oct 30, 2006 The China Financial Futures Exchange (CFFEX) issued draft rules last Monday designed to keep small investors from trading in its risky derivatives contracts that will be sold on the exchange in early 2007. Read more....
UNIFIED TAX LAW TO BOOST RATES FOR FOREIGN FIRMS Oct 30, 2006 Foreign firms could see their corporate taxes almost double over the next five years under a proposed Chinese law to unify Chinas tax codes so foreign and domestic companies pay the same rates. The Chinese government said it is changing the tax rules now because it wants to fund a variety of initiatives, including new infrastructure. It also wants to develop high-tech industries and implement environmental protection measures, government officials said. Read more....
CHINAS REGULATORY WALLS IN FINANCIAL SERVICES TO REMAIN Oct 23, 2006 China has no plans to remove the regulatory walls that separate banking, brokerage and insurance services, said Huang Yi, director-general of the China Banking and Regulatory Commission. "Lots of people say we should change the law," Yi said, and China did revisit the law in 2003. "But after discussions we won't change this article." Read more....
INVESTORS FLOCK TO ICBC IPO DESPITE DOUBTS ABOUT QUALITY Oct 23, 2006 As thousands in Hong Kong deluged bank branches to apply for Industrial and Commercial Bank of Chinas (ICBC) shares during its initial public offering to retail customers in Hong Kong last Monday, experts remain cautious about whether investing in ICBC is a sound strategy. Read more....
RISK MANAGEMENT: KEY ISSUE FACED BY CHINESE BANKS Oct 23, 2006 Strong foreign competition is likely to force Chinese banks to manage risks better in the future, said Roger Ferguson, former vice chairman of the U.S. Federal Reserve and one of the keynote speakers at the China International Banking Convention held last Thursday and Friday in Beijing. Read more.... Chinese Regulators Up Credit Suisse Quota Oct 15, 2006 Chinese regulators last week decided to allow Credit Suisse to invest an additional US$200 million in mainland stocks, bringing its total quota to US$500 million. Read more....
China Raises New Barriers To Foreigners As Old Ones Fall Oct 15, 2006 Last week, the Chinese government announced that it will issue new rules in opening up its banking sector next month C a full month earlier than the World Trade Organization deadline. In spite of that milestone, other obstacles to foreign investment are already on the rise. They include restrictions on brokerage joint ventures, real estate investments, and high capital requirements for foreign banks coming into China. Read more....
Edgar Online To Offer Company Data To Investors In China Oct 15, 2006 Edgar Online Inc. plans to offer online tools to institutional investors in China C to further facilitate the countrys drive to modernize its financial information system C and to provide investors and analysts with easier access to corporate data, executives from Edgar Online told China Finance & Currency Week last Thursday. In addition, the company hopes to offer some free online tools to retail investors through the websites of local stock exchanges. Read more....
ICBC IPO Underwriting Process: Guanxi Connections? Oct 09, 2006 The lead investment banks on the Industrial and Commercial Bank of Chinas (ICBC) upcoming $19 billion initial public offering Cthe largest in historyC declined to disclose the process of selection for the key players on the deal, but market players would not rule out Guanxi connections. Read more....
Share Reforms Compel Short-term Lull, Long-term Value Oct 09, 2006 With share reforms hot on the agenda, industry participants in the Chinese capital markets expect short-term pressure on stocks, but a strong rebound over the long-term. Read more.... |
