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Stocks Blog: China traders hoping mainland banks will cut loan prime rate

Happy Friday, traders — In China, traders are hoping mainland banks will cut the loan prime rate, following a reduction by the US Fed in its key benchmark rate and as the China economy slows. Sentiment remains week in Hong Kong, where stocks have fallen four straight days. Stocks of retailers have been hit hard. Chow Sang Sang (116 HK) is down 24 percent, and Chow Tai Fook (129 HK) is down 20.7 per cent, since July 19, when the demonstrations began taking a violent turn.  We have you… Source link

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Singapore woos banks in battle of Asia’s biggest currency hubs as it loses ground to Hong Kong

Singapore saw its lead over Hong Kong shrink to just a whisker in the battle to be Asia’s biggest foreign-exchange currency hub. To keep its advantage, the island state wants to attract more companies to set up electronic trading platforms.Average daily trading in Singapore jumped 22 per cent to a record US$633 billion in April from the same period in 2016, according to the latest survey by the Bank for International Settlements. That’s just ahead of Hong Kong’s US$632 billion, as the Chinese… Source link

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Central banks like the Fed and the ECB can’t save the global economy when governments refuse to play their part

The US Federal Reserve and the European Central Bank, the world’s two most influential central banks, are in a bind. As a mood of gloom envelops the global economy, both institutions have been under intense pressure from markets to unleash further stimulus measures.Yet, while investors expect additional easing, they have never been more sceptical about the ability of central banks to stabilise markets and stimulate growth.While both central banks are loath to precipitate a sharp sell-off by… Source link

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Vietnam 

Banks’ profit growth forecast to slow in 2019 – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Bank profits are forecast to slow this year due to reduction in income from interest of loans and net profit margin (NIM) ratio. Photo dautucophieu.net HÀ NỘI — Profit growth of Vietnamese banks in 2019 is forecast to be lower than last year, but experts say this should not be cause for concern. Analysts from the Viet Dragon Securities Company (VDSC) say despite the dip compared to 2018, results are still positive. In a banking industry report released recently, analysts attributed the slowdown to reduction in income from interest…

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China 

China to become more selective in supporting distressed banks, say Moody’s and Fitch

China is expected to continue to extend support to problematic banks, but authorities will be selective in their approach after pumping in billions of yuan to bail out three banks in the last four months, say analysts.Nicholas Zhu, a credit analyst at Moody’s Investors Service, said that while the Chinese government has been quick to deal with episodes of bank stress, as regulators aim to alleviate market fear of contagion risk amid ongoing shadow banking and interbank activity, they are also… Source link

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Money 

China cuts banks’ reserve requirements in latest effort to boost economy amid US trade war

China’s central bank announced on Friday that it will cut the required reserve ratio for all commercial banks, freeing up long-term funding of around 900 billion yuan (US$126 billion) that banks can use to increase lending and support government efforts to shore up the real economy.The 0.50 percentage point cut in the amount of reserves banks are required to hold at the central bank will be effective from September 16, the People’s Bank of China (PBOC) said.The required reserve ratio cut would… Source link

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China calls on local governments to ‘defuse the bomb’ of troubled small banks

China is in the process of drafting a road map to “defuse the bomb” of problematic small and regional banks after three crisis rocked the world’s second biggest economy in the last four months, according to an official Chinese newspaper.If a regional bank runs into trouble, such as a liquidity shortage or technical insolvency, it is expected that the bank itself, the local government, and financial regulators in Beijing work together to rescue it, according to the Economic Information Daily, a… Source link

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Smaller banks may struggle to weather China’s slowing economy, S&P warns

Tightening financial regulations and a slowing economy as a trade war continues to rage with the United States may force some of China’s smaller banks, including lower-tier city and rural commercial lenders, to merge with larger players or exit the market, S&P Global Ratings said.In a research note on Tuesday, the credit ratings agency warned that some small and mid-sized banks are less equipped to deal with a “slowing and rebalancing economy” and a changing regulatory landscape. Troubled banks… Source link

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Vietnam 

Banks required to tighten control over credit cards – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  The central bank has asked commercial banks to review transactions and terminate contracts with customers suspected of using their credit cards for improper purposes. Photo baodauthau.vn HÀ NỘI The State Bank of Việt Nam (SBV) has directed commercial banks to tighten control over credit card payments to prevent the improper use of credit cards. Under the instruction, SBV has asked commercial banks to review transactions and terminate contracts with customers suspected of using their credit cards for improper purposes. Banks should review contracts with units accepting credit card payments…

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Hong Kong Monetary Authority moves to steady ship amid protests, US-China trade war, introduces new funding facility for city’s banks

Hong Kong Monetary Authority, the city’s de facto central bank, has introduced new ways in which the city’s lenders can borrow from it, a move aimed at strengthening the banking system at a time of unprecedented social unrest.The new measures also enhance the current system banks can use to borrow from the monetary authority should they face an unexpected liquidity crunch, it said in a circular to all banks on Monday.“This is part of our ongoing work to maintain the integrity and stability of… Source link

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