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Severe China economic downturn could put Asian banks at risk, Fitch warns

Banks in Asian developed markets could face the most credit pressure in the event of a steep economic downturn in China triggered by additional 25 per cent tariffs on US$300 billion worth of Chinese imports into the United States, according to Fitch Ratings.This hypothetical situation was tested by Fitch analysts, who said that banks in Asia’s trade-dependent markets have the strongest risk controls in the region, offsetting some of the potential damage, but that a downturn would “test asset… Source link

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As Cathay feels the heat of political risk in China, it’s time to remember lessons of the Mao era

China made Cathay Pacific an offer it couldn’t refuse: sack CEO Rupert Hogg or see the airline’s all-important China routes put at risk. So Hogg went. The dismissal of the Cathay chief heralds a new era of China risk. The days of China hiding its strength and biding its time are over. Business is increasingly exposed to China political risk. With China’s threat to vet the political correctness of flight crew, China is turning back to the days of the Cultural Revolution, when to be “Red” … Source link

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Singapore 

Mersing kayaking incident: ‘We had to keep paddling, or risk drifting away’, Singapore News

It was supposed to be a routine expedition off Mersing, one that some of the members of the kayaking group had gone on before. But what the group of 15 paddlers and one boatman did not expect when they launched their kayaks on Aug 8 was to run into unusually strong winds and choppy seas. It was so bad that the guide of the kayaking group ended up on a different island from the rest of the group. Worse, two members of the group, Madam Puah Geok Tin, 57, and…

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China 

China may use foreign exchange reserves to fight US financial war risk, analysts say

As the United States widens the conflict with China into the realm of finance, raising the possibility that Washington will use the US dollar payment system as a weapon, analysts are wondering whether China will shift how it uses its US$3.1 trillion in foreign exchange reserves in anticipation of extreme financial volatility. China, analysts said, may consider preparing itself against a possible US financial attack by shifting towards a more defensive stance, such as using its foreign exchange… Source link

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China 

China’s July corporate bond defaults jump to a four-month high as funding dries up amid risk aversion in a slowing economy

Company bond defaults in China hit a four-month high in July as a slowing economy and risk aversion triggered by the unexpected seizure of Baoshang Bank marred refinancing prospects at weaker firms.Onshore corporate bond defaults reached at least 14.4 billion yuan (US$2.1 billion) from 14 notes in July, according to data compiled by Bloomberg, bringing the total year-to-date defaults to 70.9 billion yuan from 89 bonds.After two straight months of declines through May, bond delinquencies are… Source link

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Profits of Hong Kong-listed firms at risk as US-China trade war rages

Even as a new round of trade talks kicked off this week, the ongoing trade war between the United States and China is increasingly weighing on the bottom lines of both mainland and Hong Kong companies.More than two dozen Hong Kong-listed firms have specifically cited the effects of tariffs on demand for their products or a weakening global macroeconomic outlook because of rising protectionism in issuing profit warnings since the end of June, according to regulatory filings.Escalating trade… Source link

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China 

China’s central bank issues draft rules on financial holding companies in move to rein in risk

China’s central bank on Friday released a draft regulation on financial holding companies, as it seeks to contain the potential spread of risk from their business to other sectors.“There is a regulatory vacuum around some financial holding companies, especially those starting from non-financial businesses, which has led to risk accumulation and exposure,” the People’s Bank of China (PBOC) said in an online statement.The draft rules, which will be finalised after feedback is received by late… Source link

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China 

China should drop nationalistic approach to manage tech war risk with US, Chinese scholars say

China should drop its nationalistic approach of focusing on “national industry” and “indigenous innovation” to manage the risk of a trade and technology decoupling with the United States, according to a group of academic policy advisers, offering insight into the debate on how the country should respond to an increasingly hostile Washington.The trade war with the US has rumbled on for over a year with its series of tariffs imposed by both sides, while the tensions have extended into advanced… Source link

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Property 

Hong Kong sells biggest plot of Kai Tak’s land at discount as city’s unrest drives investors to the sidelines and saps risk appetite

Hong Kong’s government sold the biggest plot of residential land at the former Kai Tak airport at lower than expected price, as seven consecutive weeks of increasingly violent street protests drove many developers to the sidelines and sapped their appetite for long-term investments.Dragon Star H.K. Investments, a consortium of three major developers, paid HK$12.74 billion (US$1.63 billion), or HK$11,841.70 per square foot, for Kai Tak Area 4A Site 1, according to an announcement by the Lands… Source link

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High-profile defaults highlight risk in China’s shadow-banking sector amid asset deterioration

A slew of high-profile defaults in China’s shadow-banking sector has highlighted the acute deterioration of assets in the US$9 trillion market, analysts said.Noah Holdings, one of China’s largest wealth and asset managers, revealed last week that 3.4 billion yuan (US$500 million) of investment in Camsing International is in danger of default, after Camsing’s controller Lo Ching was arrested by police for suspected fraud.In early June, Anxin Trust disclosed that it had missed payments of 11.8… Source link

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