China 

Bankruptcies among Chinese developers are up by a half amid slowing economy, restrictions on borrowing

The number of Chinese property developers going out of business as they find themselves struggling to borrow money amid a slowing economy has gone up by half, according to official figures.So far this year, 274 builders have filed for bankruptcy, a rise of 50 per cent from a year ago, according to the website of the People’s Court Daily, a state-owned publication.A recent, high-profile example was Yinyi Group, a developer in the Chinese port city of Ningbo, which filed for bankruptcy… Source link

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China 

China’s total debt rises to over 300 per cent of GDP as Beijing loosens borrowing curbs to boost growth

China’s total debt burden rose strongly in the first quarter of 2019 as Beijing allowed more loans and local government bond issuance to help shore up the slowing economy, according to estimates by the Institute of International Finance.The figure stood at nearly 304 per cent of its gross domestic product (GDP) in the first three months of the year, up from 297 per cent a year earlier, the US-based trade association said.The Chinese government has sought to rein in corporate debt by restricting… Source link

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Home 

Budweiser’s mega IPO falls flat with Hong Kong investors as high borrowing costs take the fizz out of demand

For many people there is nothing worse than a flat beer. Demand in Hong Kong for the biggest IPO of the year so far was anything but sparkling as Budweiser Brewing Company APAC’s shares proved they were not to everyone’s taste.The retail offering, which ran from Monday until noon on Thursday, is probably about 3.7 to 5 times oversubscribed, according to the latest estimates of 10 stock brokers polled by the South China Morning Post. That is far lower than initial forecasts that the IPO would be… Source link

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Global 

India’s central bank cuts borrowing rate and changes monetary policy stance to ‘accommodative’

The Reserve Bank of India cut its policy interest rate by 25 basis points in a widely expected move on Thursday, while also changing its monetary policy stance to “accommodative” after the economy grew at its slowest in over four years.The six-member monetary policy committee (MPC) cut the repo rate to 5.75 per cent as predicted by 44 of 66 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.50 per cent.All six of the MPC members voted for a 25 basis points cut, and for……

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Global 

Australia cuts borrowing rates to historic low as economy slows

Australia’s central bank lowered the cost of borrowing for the first time in three years on Tuesday, hoping to extend a record 28-year-run without a recession amid stiffening headwinds.The Reserve Bank of Australia cut rates by 25 basis points to a historic low of 1.25 per cent, as the pace of growth slowed to levels not seen since the global financial crisis.Australia dodged much of the global economic tumult of the past two decades as Beijing lapped up its vast iron ore, coal and other… Source link

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China 

China quietly cuts borrowing costs while keeping rates on hold

The People’s Bank of China (PBOC) has been quietly guiding interbank borrowing costs down without actually cutting official interest rates, with the latest move a record one-day injection of cash into the market. The central bank pumped a net 560 billion yuan (US$83 billion) into the financial system on Wednesday, the biggest open market operation on record. While that action was mostly aimed at addressing a funding shortage ahead of Lunar New Year, it also speaks to a policy priority for the PBOC – providing cheaper funding to banks to…

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China 

China’s private firms shy away from bank borrowing, delaying investment

China’s private sector, the driving force behind the country’s economic miracle over the last 40 years, is struggling amid the Chinese government’s campaign to reduce national debt and the trade war with the United States. This is the second story in a series that will detail the challenges private firms face and outline the government’s attempts to address them. Small business owner Philip Chen has never borrowed a penny from a bank, even during his darkest days back in 2003, when he had to turn to friends and relatives for…

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China 

China’s central bank keeps short-term borrowing rates steady despite US Fed rise

China’s central bank left its short-term borrowing rates unchanged on Thursday, choosing not to follow its US counterpart, which raised its benchmark rate just hours earlier. The decision follows the The People’s Bank of China’s (PBOC) announcement on Wednesday of a new lending tool, the Targeted Medium-Term Lending Facility, aimed at spurring lending to smaller firms. The PBOC kept the interest rate on seven-day reverse bond repurchase agreements at 2.55 per cent, and kept the 14-day reverse repurchase rate at 2.7 per cent, it said in a statement on Thursday.…

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Property 

Hong Kong home buying demand dampened by borrowing costs, trade war

Hong Kong’s housing sentiment has cooled amid rising pessimism about the outlook for the world’s least affordable housing market. Hit by rising borrowing costs for the first time in 12 years and the fallout of the worsening US-China trade war, housing demand has declined, housing statistics show. Developers have been offering lower prices and adding sweeteners to entice buyers, as more investment banks joined the chorus suggesting home prices could plunge by up to 15 per cent in the next 12 months. “Investors are generally more sensitive than individual buyers…

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