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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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Vietnam 

Banks unexpectedly cut lending rates to aid businesses – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  State-owned banks, including VietinBank, offer new preferential interest rates for short-term loans from today. — Photo VietinBank HÀ NỘI — Some banks have unexpectedly announced they would cut interest rates on Vietnamese đồng loans in the Government’s priority sectors to support firms in 2019, starting from today. Lê Đức Thọ, VietinBank’s chairman, said this is the second time banks have cut lending rates this year to follow up on the Government’s instruction to support domestic production and businesses, contributing to promoting the country’s economic growth. Under the move, State-owned banks,…

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Vietnam 

P2P lending platform signs co-operation deal with Vietinbank Insurance – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Representatives of Vay Mượn Joint Stock Company and Vietinbank Insurance Corporation sign the co-operation agreement. — VNS Photo Vũ Hoa HÀ NỘI — Vaymuon.vn – the largest peer-to-peer (P2P) lending platform in Việt Nam – on Thursday signed a strategic co-operation agreement with Vietinbank Insurance Corporation to protect loans.  According to the agreement, both borrowers and lenders will be protected from unpredictable risks that prevent them from paying or collecting debts. With the insurance policy, lenders should find it easy to provide loans to borrowers. P2P lending is a new way of debt financing that allows people…

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China 

China’s Baoshang Bank failure has silver lining in the form of greater focus on rural lending

The midsummer heat had sent the farmers from the village of Wujia Gedu back to their single-storey flat-roof houses before noon, while outside, endless fields of corn swayed gently in a lunchtime breeze.Few vehicles passed on the narrow road between the green waves of corn, apart from a handful of buses linking the village with the town centre of Dalad Banner, a county-level region more than 100km from the county seat of Ordos, Inner Mongolia. Hardly anybody, however, got on or off at the… Source link

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Chinese fintech giant Lufax cuts P2P lending to meet regulatory requirements, may restart IPO plans after restructuring segment

Ping An Insurance-backed Lufax, one of China’s largest financial technology companies, said on Thursday it was scaling down its peer-to-peer (P2P) lending business, but denied reports it was exiting the sector altogether.The company, also known as Shanghai Lujiazui International Financial Asset Exchange, said: “We are making three cuts in line with regulators’ requirements. The existing P2P products and customers will not be affected.”Lufax was referring to required cuts in outstanding P2P loan… Source link

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Vietnam 

Foreign currency lending abolished – impact on enterprises – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  The end of lending in foreign currencies will not affect the revenue and profit of enterprises. — Photo cafef.vn HÀ NỘI — Enterprises can borrow money in Vietnamese đồng (VNĐ) and then purchase foreign currency for payment when they need the capital to import input materials, say commercial banks. According to Circular 42/2018 issued by the State Bank of Việt Nam (SBV), short-term foreign currency loans to exporters who need to import goods and services in order to implement goods production and trading plans serving domestic needs were stopped on…

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Vietnam 

Credit institutions warned about P2P lending – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

    Việt Nam hasn’t issued a law on P2P lending and the model has many potential risks. thoibaonganhang.vn HÀ NỘI The State Bank of Việt Nam (SBV) has warned Vietnamese credit institutions and foreign banks in the country to be cautious before working with peer-to-peer (P2P) lending companies as there are many risks related to the service. In a document sent to lenders this week, the SBV said the fourth Industrial Revolution has promoted the development of many new products and services, including P2P lending, which directly connects borrowers…

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China mulls scrapping benchmark lending rates in line with market conditions in latest reform move

China is considering scrapping its official benchmark lending rates to allow banks to react to market conditions in the latest move to liberalise interest rates, People’s Bank of China governor Yi Gang said on Tuesday.Yi’s comments in the middle of the trade war with the United States may be a bid to show that Beijing remains determined to continue market-oriented reforms rather than embark on aggressive monetary easing to help stabilise the economy.Market reforms should continue to benefit… Source link

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China’s beleaguered peer-to-peer lending market will get a boost from Greater Bay Area development, says DBS Bank

China’s peer-to-peer (P2P) lending industry, which has shrunk dramatically under a government crackdown, should get a welcome boost from the development of the Greater Bay Area, according to DBS Bank.By 2030, P2P lending will enjoy an annual growth rate of 17 per cent in the new economic and innovation hub, making it the fourth-fastest growing sector there, the Singaporean bank estimated.In P2P lending, internet-based platforms match private investors with individuals or small companies that… Source link

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Tightened mortgage lending has pushed Hongkongers into arms of cash-rich developers and their expensive property loans

Mortgage loans for new homes provided by banks inched up 1.5 per cent in 2018, but the proportion of loans offered by non-banking financial companies, mainly developers’ finance companies, jumped to 21.7 per cent of the total, up from 14.6 per cent in 2017. Photo: Felix Wong Source link

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