Money 

China changes the way bank loan rates are set, with HSBC left out of rate-setting club

China has changed its system for deciding bank lending rates so that the central bank can effectively influence and control interest rates, a significant move in the world’s second-biggest economy.The change – part of China’s long-standing pursuit of a market-based central banking structure – comes as the country’s economic growth is losing steam amid a protracted trade war with the United States and as Beijing seeks to cut financing costs for struggling small firms.Under the new system, a club… Source link

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China 

China’s small banks still struggling to obtain funds to lend three months after first bank failure in 20 years

China’s numerous small banks are still struggling to raise the finances needed to be able to offer more loans to aid the slowing economy nearly three months after the country’s first bank failure in more than 20 years.After the government takeover of Baoshang Bank at the end of May, larger banks and investors remain cautious about providing financing to smaller institutions, fearful that their balances sheets hide large numbers of bad loans amid a continued government clampdown on risky lending… Source link

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HSBC reshuffles decks as the bank braces for a more challenging operating environment

John Flint, then-HSBC chief executive, declared in June of last year that it was time for the bank “to get back into growth mode”.Under his predecessor Stuart Gulliver, the lender, once known in its advertising as the “world’s local bank”, had cut thousands of jobs, shrunk its global footprint from 87 countries to 67 and spent tens of millions of dollars to revamp its compliance following a scandal over its money-laundering controls that saw it pay US$1.9 billion in a settlement with US… Source link

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More than a third of investors expect a recession in 12 months, Bank of America Merrill Lynch survey finds

Recessions fears have reached their highest levels in eight years as investors shift away from equities to bonds, according to the latest Bank of America Merrill Lynch survey of fund managers.More than a third of investors surveyed believe a global recession is likely in the next 12 months, the highest recession probability since October 2011, the August Fund Manager Survey found.“Investors are the most bullish on rates since 2008 as trade war concerns send recession risk to an eight-year high,… Source link

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China’s bank lending weakened in July, suggesting Beijing’s stimulus efforts not working

Chinese monetary data for July was weak across the board, suggesting that Beijing’s efforts to galvanise new lending are not having the intended effect.Chinese banks extended 1.06 trillion yuan (US$150.17 billion) in net new loans last month, down from 1.66 trillion yuan (US$235.17 billion) in June, according to the data released by the People’s Bank of China on Monday.July’s lending was well below the 1.25 trillion added bank credit predicted by a Bloomberg survey of economists, and was the… Source link

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China 

China close to launching its own cryptocurrency, says central bank, amid pressure from Facebook’s Libra

The People’s Bank of China is “close” to issuing its own cryptocurrency, according to a senior official.The central bank’s researchers have been working intensively since last year to develop systems, and the cryptocurrency is “close to being out”, Mu Changchun, deputy director of the People’s Bank of China (PBOC)’s payments department, said at an event held by China Finance 40 Forum over the weekend in Yichun, Heilongjiang. He did not give specifics on the timing.Mu repeated the PBOC’s… Source link

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HSBC’s Greater China head Helen Wong quits as bank loses second heavyweight in a week

HSBC, the largest lender in Hong Kong, has lost its second senior management within a week.The bank’s Greater China chief executive Helen Wong Pik-kuen has resigned and will start on leave from Saturday, according to an internal memo seen by the South China Morning Post.Wong, who joined HSBC in 1992, “has decided to leave HSBC to pursue an external opportunity”, according to the memo sent by her boss, Peter Wong Tung-shing, deputy chairman and chief executive of Asia-Pacific, to all 57,000… Source link

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Unit of China’s sovereign wealth fund takes over Xiao Jianhua-linked Heng Feng Bank in third case of nationalisation since May

China’s sovereign wealth fund has taken over Heng Feng Bank, a troubled lender linked to fugitive financier Xiao Jianhua, in the third case in as many months of the state exerting its grip over wayward financial institutions.Central Huijin Investment, a subsidiary of the China Investment Corporation that acts as the Chinese government’s shareholder in the country’s four biggest banks, has emerged as a strategic investor in Heng Feng, according to a brief report overnight by Shanghai Securities… Source link

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Chinese stocks buoyed by better-than-expected exports data, Ping An Bank earnings, record first rise in seven days

Chinese stocks rose for the first time in seven days, as better-than-expected exports data and strong results by Ping An Bank provided some relief to investors, suggesting the fallout from the US-China trade war might not be as bad as anticipated.The Shanghai Composite Index added 0.9 per cent to 2,794.55 on Thursday, ending a six-day, 6.2 per cent losing streak that sent the benchmark to a five-month low. However, the trading volume on the Shanghai exchange was 9.3 per cent below its 30-day… Source link

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China’s central bank signals move to shore up yuan, de-escalate ‘weaponising’ currency after 24 hours of mayhem on global markets

China’s central bank will sell 30 billion yuan (US$4.3 billion) worth of short-term yuan denominated securities in Hong Kong next week, signalling its plan to absorb offshore liquidity and cushion against further depreciation of its currency versus the US dollar.The People’s Bank of China (PBOC) unveiled the plan in a statement on its official website at 9am on Tuesday, saying the operation would commence with the issuance of central bank bills in Hong Kong on August 14.“It is a clear message… Source link

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