• SAFE eases regulations for special economic zones

    May 24, 2013

    China's State Administration of Foreign Exchange (SAFE) announced that it will ease regulations of foreign currency transactions for firms operating in special economic zones in the country. The simplified regulations now allow companies to take legal profits derived from exports out of the country, as long as they are located in special economic zones. The new rules, which will take effect in June, will also cut down paperwork requirements and reduce the frequency of regulatory checks.
  • Yuan deposits at Singapore banks hit Rmb254bn

    Sep 1, 2014
    The Monetary Authority of Singapore (MAS) announced that banks in Singapore held Rmb254bn (USD41.33bn) worth of yuan deposits at the end of June, boosting the country's goal to become a major offshore trading centre for the Chinese currency. The amount was higher than the Rmb220bn (USD35.80bn) that banks held at the end of Q1. To further promote the use of yuan, Singapore and China have agreed to allow eligible companies and individuals in the Suzhou Industrial Park to conduct cross-border yuan transactions with the city-state.
  • China Galaxy Securities seeks to raise USD1.24bn in Shanghai IPO

    Sep 1, 2014
    One of China's largest brokerages, China Galaxy Securities Co Ltd, seeks to raise about Rmb7.6bn (USD1.24bn) as it plans to list in Shanghai. Galaxy aims to sell 1.69 billion A shares when its application is approved by the China Securities Regulatory Commission (CSRC). Galaxy hopes to list in China after the government resumed listing and IPOs in January following a 14-month hiatus.
  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • Chinese banks report slower profit growth in H1

    Sep 1, 2014

    Five of China's 16 listed banks reported a net profit growth rate of less than 10% in H1 2014, from only two banks at the same time last year. The five banks, including Bank of Communications, China Citic Bank, Everbright Bank, China Construction Bank and the Commercial and Industrial Bank, said the single-digit profit growth is a result of an economic slowdown at home and abroad. Of all the major banks in China, the Commercial and Industrial Bank had the biggest net profit of Rmb148.4bn (USD24bn) in H1, exceeding the combined net profits of Sinopec, CNPC and CNOOC, China's three oil giants.

  • Weakening yuan pulls China's corporate revenues down

    Sep 1, 2014
    Companies in China have been borrowing cheap money overseas, but they are paying the real price for it now. Many Chinese firms complained to have sustained hits to their H1 financial results from foreign-currency exchange rates. These firms borrowed billions of dollars from the United States, Hong Kong, and other places and the weakened Chinese yuan has made Chinese exports cheaper to sell overseas and interest payments on foreign debt more expensive. Bei Fu, Standard & Poor's analyst, said that it is difficult to tell if the yuan will keep appreciating in the next three to five years.
  • China Eastern Airlines' H1 net profit falls 98%

    Sep 1, 2014

    China Eastern Airlines had its net profit falling a disastrous 97.76% year-on-year in H1 of this year. CEA only made Rmb14m (USD2.28m), registering a business revenue of Rmb42.59bn (USD6.93bn) from January to June 2014 -- a 2.68% increase year-on-year, according to a statement filed with the Shanghai Stock Exchange on 31 August. CEA said that its substandard performance was caused by fewer high-end business tourists, improved high-speed trains and geopolitical instability.

  • Bad debt manager Huarong gets USD2.4bn investment

    Aug 29, 2014

    A group of Chinese and foreign investors, including Goldman Sachs and Warburg Pincus, poured about USD2.4bn of investment into China's biggest bad debt manager, China Huarong Asset Management, ahead of the company's IPO in Hong Kong. State-owned Huarong sold 20.98% stake to the eight investors for Rmb14.54 (USD2.36bn), which in turn valued the company at about USD11bn. Huarong was established by the government to clean up the banking system of bad loans. It has become the biggest of the four state-owned firms set up in the late 1990s to take bad loans off the books of China's biggest banks.
  • ICBC posts record USD12.2bn profit in Q2

    Aug 29, 2014

    The world's largest bank by assets, Industrial & Commercial Bank of China (ICBC), reported a net income of Rmb74.8bn (USD12.2bn) in the second quarter, a 7.5% rise year-on-year. ICBC boosted loan margins and limited provision for bad loans, limiting the drag on profit, analysts said. In H1 of this year, ICBC's net income rose 7% to Rmb148.1bn (USD24.10bn), the bank said. Net interest income was up 10% to Rmb237.6bn (USD38.67bn). ICBC had Rmb10.6tr (USD1.72tr) of loans as of 30 June, up 7.3% from the end of last year.

  • Shanghai FTZ to set up 8 int'l trading platforms

    Aug 28, 2014

    The Shanghai Pilot Free Trade Zone will create eight international trading platforms by next year, a work plan that the Shanghai municipal government issued on 26 August shows. The platforms will concentrate on bulk commodities, cotton, gas, iron ore, liquid chemicals, nonferrous metals transactions, oil, and silver. The Shanghai Securities News previously reported that an international gold-exchange centre will begin trading in the FTZ on 26 September.

  • Establishment of three new private banks gets green light

    Aug 28, 2014

    The China Banking Regulatory Commission (CBRC) has given the green light for the establishment of three private banks in the country as part of a move to further open the country's banking sector. The three new firms, including Tencent's WeBank, are among the new private banks that will be opened under a government pilot scheme approved on 11 March last year. Tencent’s Assistant General Manager of the Strategy Development Department Tang Ling believes WeBank has the capability to better accommodate micro businesses and consumers by leveraging Tencent’s already massive customer base.

  • Alibaba mobile devices' revenue rises before IPO

    Aug 28, 2014

    China-based Alibaba Group Holding Ltd came out with a report showing a huge rise in revenue from the sale of its mobile devices. Analysts believe this could boost its advantage in September this year when Alibaba starts to convince investors on its long-anticipated initial public offering. On 26 August, Alibaba revealed that its accelerated revenue growth was mainly due to Chinese consumers’ usage of the e-commerce giant's website to purchase smartphones, cellular phones and similar mobile devices. The company's revenue went up USD2.5bn in Q2 of this year or 46% year-on-year.

  • Forex losses affect Air China's profit

    Aug 27, 2014

    Air China Ltd revealed that its 58% profit decline was caused by foreign-exchange losses in H1 of this year, even though its revenue from air travel went up. The airline company added that the yuan's depreciation versus the US dollar increased the costs of payments on its USD-denominated debt. The renminbi declined 2.5% from January to June 2014, causing Air China to suffer a foreign-exchange loss of Rmb721m (USD117m).

  • ICBC's H1 cross-border RMB deals rise 70%

    Aug 26, 2014

    Industrial and Commercial Bank of China Ltd announced that its cross-border renminbi business hits Rmb1.7tr (USD276bn) in H1 of this year, up 70% year-on-year. ICBC reported on 25 August that it has handled cross-border yuan settlements worth around Rmb6.7tr (USD1.09bn) since 2009, when the country began trials of cross-border trade settlement utilising renminbi in Macau, Hong Kong, and the Association of Southeast Asian Nation and a few other regions.

  • Russia's Laitbank to issue 60,000 China UnionPay cards

    Aug 26, 2014

    Russia’s Laitbank is set to issue up to 10,000 China UnionPay cards this month and plans to issue 50,000 more over the next two months, Russian newspaper Gazeta said. UnionPay confirmed that it is signing up banks in Russia but did not identify any institution. UnionPay was launched in 2002 by the People's Bank of China. It has grown to become the second-largest payment network by value of payments process, next only to Visa.

  • China Pacific, Allianz JV to be launched in 2015

    Aug 26, 2014

    Shanghai-listed China Pacific Insurance (Group) Co Ltd, the third biggest health-insurance provider in the country, announced that its joint venture with Germany's Allianz will officially start in H1 of 2015. China Pacific Chairman Gao Guofu said on 25 August that the preparations are going well and that the start of operations for the JV will proceed as long as nothing significant prevents it from doing so. Gao added that the JV is very important for the diversification of China Pacific.

  • Gold exchange to open in Shanghai FTZ

    Aug 25, 2014

    The Shanghai Gold Exchange (SGE) is scheduled to launch an international board for gold transactions in the city's free trade zone (FTZ) on 26 September, to attract overseas capital into China's gold market, a source from the bourse said. The statement came after Xu Luode, chairman of the Shanghai Gold Exchange, stated at a news conference that an international board is set to be launched in the zone during in H2 of 2014 to attract offshore renminbi investments on the mainland. The SGE has signed an agreement with the Industrial and Commercial Bank of China, China Construction Bank and the Shanghai branches of the Bank of China and Shanghai Pudong Development Bank to provide transactions and settlement services for its gold trade.

  • 2013 audits help recover USD44.7bn

    Aug 25, 2014

    A total of Rmb275bn (USD44.7bn) were recovered through audits conducted by the National Audit Office (NAO) in 2013, a report recently released showed. The NAO said a total of 707 government departments and SOEs were audited last year, resulting in the recovery of hundreds of billions of yuan. NAO General Auditor Liu Jiayi said the office exposed some serious violations and offered leads on economic crimes. It also uncovered institutional flaws and helped deepen China's reform. China Daily reported that the audit also prompted SOEs and government departments to correct most of the discovered problems and to introduce better management and risk control.

  • Alibaba's Zhaocaibao generates capital flow of USD1.78bn

    Aug 25, 2014
    Since it was launched in April this year, Alibaba's financial service Zhaocaibao has generated capital flow of Rmb11bn (USD1.78bn) and has served over 200,000 small and micro enterprises, the China Times reported. Zhaocaibao, which means "attracting fortune", is a platform similar to a P2P financing platforum, and Alibaba considers it as one of its most lucrative online financial products. Although it has generated nearly USD2bn capital flow, Zhaocaibao only has seven employees.
  • BOC profits hit by bad loans in H1

    Aug 20, 2014

    The Bank of China Ltd revealed that bad loans have upset their profit increase in H1 of this year. The BOC, China's fourth-biggest bank, is the first of the country's largest state-controlled banks to come out with their H1 results. According to BOC, its net profit from January to June was at Rmb89.72bn (USD14.6bn) -- an 11% rise year-on-year, or slightly more than the Rmb89.56bn (USD14.58bn) median forecast of six analysts that The Wall Street Journal polled.

  • China LEI registration system goes online

    Aug 19, 2014

    The People's Bank of China made an announcement on 18 August that an online system for the Legal Entity Identifiers' registration is now fully operational. The LEI system is a proposal of the Financial Stability Board -- central bankers and finance ministers from the world's biggest economies who pooled their resources after the worldwide financial crisis in 2008. The LEI is a unique ID that legal groups involved in international financial transactions can utilise to enhance integration and cut down on risks.

  • Foreign banks report double-digit profit growth

    Aug 18, 2014

    Foreign-invested banks in the country enjoyed double-digit profit growth in the first six months of the year, China Business News reported. Leading the pack is Charter Bank, which reported pre-tax earnings of USD193m, a 65% growth year-on-year. HSBC followed suit with a profit of USD566m, a 64% pre-tax year-on-year growth. Hang Seng Bank registered a 26.4% with USD21m while Bank of East Asia's pre-tax year-on-year profit growth hit 25% to reach USD198.7m. Liang Guowei, head of banking and capital markets for PricewaterhouseCoopers China, said the profit was mostly generated from activities derived from industrial cross-border trade as well as gains from retail earnings and business loans.

  • China's top 5 banks in bond offering spree

    Aug 15, 2014

    China's top five banks - China Construction Bank (CBC), Agricultural Bank of China (AgBank), Bank of Communications (BOCOM), Industrial and Commercial Bank of China (ICBC), and Bank of China (BOC) - are set to raise Rmb128bn (USD20.8bn) in a two-week bond offering spree. The flurry of offerings, analysts said, shows Chinese regulators have signed off on the giant deals despite their potential drain on market liquidity, and are comfortable with the new Basel III-compliant bond structure.  CBC and AgBank plan to raise Rmb50bn worth of Basel III-compliant Tier 2 capital via domestic bond issues while BOCOM plans to raise Rmb28bn. ICBC and BOC together offered Rmb50bn of bonds last week.

  • Chinese households invest USD2.1tr in wealth-management products

    Aug 15, 2014

    China Banking Wealth Management Registration Systems said that Chinese households have invested a total of USD2.1tr of their savings into wealth-management products. The latest figure shows that more Chinese household savers are looking at the 5.2% annualised return offered by wealth products compared with the 3% for benchmark one-year deposits. Wealth-management products are also less risky compared with trust products, said one analyst. Wealth-management products typically require a minimum investment of Rmb50,000 (USD8,130).

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