Tag Archives: china

China January lending soars to four-year high

China’s banks disbursed the most loans in any month in four years in January, a surge that suggests the world’s second-biggest economy may not be cooling as much as some fear.

Chinese banks lent 1.32 trillion yuan ($217.6 billion) worth of new yuan loans in January, beating a 1.1 trillion yuan forecast and nearly three times December’s level, the People’s Bank of China said in a statement on Saturday on its website.

http://www.reuters.com/

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    The global financial crisis did not start in 2008 but in 2007 when BNP Paribas and UBS AG suspended withdrawals from some of their funds. If the world is once again buffeted by a similar crisis thanks to the enormous splurge in Chinese lending and fears about the quality of…
    Tags: china, lending, january, bank, chinese, economy, asian
  • 85
    The yuan has recently been something of a safe haven among emerging-market currencies, yet market participants have learned from a bloody lesson over the past week that it is no longer an easy, one-way bet. A sharp fall of both the onshore and offshore yuan against the greenback made the…
    Tags: yuan, chinese, china, asian
  • 82
    The People’s Republic of China’s (PRC) economy has shown signs of overheating despite a sharp slowdown in economic growth, suggesting that, constrained by the supply of labor, its potential growth rate might have fallen significantly from its past level. With the priorities of the PRC’s authorities shifting from raising economic growth…
    Tags: economy, china, level, asian
  • 82
    China’s Premier Li Keqiang isn’t the sort of man to blush in public. But yesterday, when he went in front of China’s national legislature and targeted 7.5% growth in gross domestic product for 2014, he should have. The problem isn't the number -- most economists agree that 7.5% is a…
    Tags: china, chinese, china's, economy, asian
  • 80
    Shanghai's over-the-counter equity market was almost deserted on a weekday morning last week. Two cleaning ladies swept the floor of a trading hall devoid of brokers or computers, while a woman at an information desk ate breakfast and talked on her mobile phone. During four visits this year to the…
    Tags: china, asian

PBOC Singling Out Industries Fuels Nomura Anxiety: China Credit

The singling out of three debt types most at risk by the People’s Bank of China has prompted Nomura Holdings Inc. to warn that rising borrowing costs will make it even harder to avoid a default by these issuers.

The PBOC will enhance monitoring of local government financing vehicles, industries with overcapacity and property developers to prevent default risks from spreading, according to its fourth-quarter policy report issued on Feb. 8. Jinzhou Economic Technology Zone Development Group Co., an LGFV in Liaoning province, sold new seven-year bonds at 9.1 percent in January, while Guangxi Nonferrous Metal Group Co. issued nine-month bills at 8.5 percent. That’s almost twice as high as the yield on 2021 government debt.

http://www.bloomberg.com

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  • 79
    China's banks disbursed the most loans in any month in four years in January, a surge that suggests the world's second-biggest economy may not be cooling as much as some fear. Chinese banks lent 1.32 trillion yuan ($217.6 billion) worth of new yuan loans in January, beating a 1.1 trillion…
    Tags: january, china, three, bank, high, asian
  • 78
    The People’s Republic of China’s (PRC) economy has shown signs of overheating despite a sharp slowdown in economic growth, suggesting that, constrained by the supply of labor, its potential growth rate might have fallen significantly from its past level. With the priorities of the PRC’s authorities shifting from raising economic growth…
    Tags: china, economic, policy, people, asian
  • 78
    The yuan has recently been something of a safe haven among emerging-market currencies, yet market participants have learned from a bloody lesson over the past week that it is no longer an easy, one-way bet. A sharp fall of both the onshore and offshore yuan against the greenback made the…
    Tags: china, asian
  • 76
    Shanghai's over-the-counter equity market was almost deserted on a weekday morning last week. Two cleaning ladies swept the floor of a trading hall devoid of brokers or computers, while a woman at an information desk ate breakfast and talked on her mobile phone. During four visits this year to the…
    Tags: http://www.bloomberg.com, china, asian
  • 67
    The global financial crisis did not start in 2008 but in 2007 when BNP Paribas and UBS AG suspended withdrawals from some of their funds. If the world is once again buffeted by a similar crisis thanks to the enormous splurge in Chinese lending and fears about the quality of…
    Tags: china, will, january, default, bank, asian

How to hedge yourself against shakes from Asia’s biggest economy China

The global financial crisis did not start in 2008 but in 2007 when BNP Paribas and UBS AG suspended withdrawals from some of their funds.

If the world is once again buffeted by a similar crisis thanks to the enormous splurge in Chinese lending and fears about the quality of lending in the giant shadow banking industry, then historians will look back at January 2014 when a fund promoted by Industrial and Commercial Bank of China ( ICBC) came close to default.

Read more at:
http://economictimes.indiatimes.com/articleshow/30131463.cms

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    Pacific Money writer James Parker recommends the most insightful economics and finance offerings. James Parker was recently asked which English-language books he would recommend for someone seeking to understand the Chinese economy and financial system. The list and some brief summaries are included here http://thediplomat.com/2014/02/10-books-for-understanding-chinas-economy/
    Tags: economy, chinese, financial
  • 87
    China's banks disbursed the most loans in any month in four years in January, a surge that suggests the world's second-biggest economy may not be cooling as much as some fear. Chinese banks lent 1.32 trillion yuan ($217.6 billion) worth of new yuan loans in January, beating a 1.1 trillion…
    Tags: january, china, bank, chinese, lending, economy, asian
  • 85
    The People’s Republic of China’s (PRC) economy has shown signs of overheating despite a sharp slowdown in economic growth, suggesting that, constrained by the supply of labor, its potential growth rate might have fallen significantly from its past level. With the priorities of the PRC’s authorities shifting from raising economic growth…
    Tags: economy, china, asian
  • 84
    China’s Premier Li Keqiang isn’t the sort of man to blush in public. But yesterday, when he went in front of China’s national legislature and targeted 7.5% growth in gross domestic product for 2014, he should have. The problem isn't the number -- most economists agree that 7.5% is a…
    Tags: china, chinese, economy, asian
  • 74
    For a decade, starting in the late nineteen-eighties, Ramesh Ramanathan worked his way up the executive ladder at Citibank in the United States. Then he led its corporate-derivatives branch in London. In 1998, however, he quit and returned to India, his country of birth. He had a new goal: finding…
    Tags: bank, will, economy, asian

China central #bank says to continue stable monetary policy

China‘s central bank reiterated its stance of continuing with a stable monetary policy this year and promising to contain risks in lending, noting that the economy has yet to find a stable base for growth.

In its quarterly monetary policy report, released on Saturday, the People’s Bank of China (PBOC) also said that it would step up oversight of lending in risky areas such as property and industries struggling with overcapacity.

(Reuters)

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    Chinese economic growth slowed to the lowest level since 1999 last year, expanding 7.7%. Policymakers have recognized the need to rebalance economic growth and are now slowly transitioning away from a credit and export driven economy to one driven by consumer growth. Some argue that the recent crackdown on shadow banking and the money market rate spikes are…
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    One reason for global market weakness is investors’ fears that emerging market economies may be heading for a broad crisis, sparked by higher U.S. interest rates and slowing growth in China. Much of the analysis in the last few days has focused on why these nations are less exposed to…
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  • 70
    11 Ugly Charts That Confirm China's Dramatic Slowdown During the National People's Congress, China's policymakers announced that it would target 7.5% GDP growth target for 2014. This is down from 7.7% growth in 2013, and the recent data shows that the economy is clearly off to a slower start to…
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  • 69
    China's central bank is prepared to take its strongest action since 2012 to loosen monetary policy if economic growth slows further, by cutting the amount of cash that banks must keep as reserves, sources involved in internal policy discussions say. A cut would be triggered if growth slips below 7.5…
    Tags: bank, central, china's, growth, policy, monetary, year, economy, china
  • 69
    When stock markets are free-falling 10+% in a matter of days, it’s natural to seek some answers to the question “why now?” Some are saying it was all the result of high-frequency trading (HFT), while others point to China’s modest devaluation of its currency the renminbi (a.k.a. yuan) as the…
    Tags: china, growth, economy, central, bank

How China’s Slowdown Is Having Ripple Effects All Over The World

Chinese economic growth slowed to the lowest level since 1999 last year, expanding 7.7%.

Policymakers have recognized the need to rebalance economic growth and are now slowly transitioning away from a credit and export driven economy to one driven by consumer growth. Some argue that the recent crackdown on shadow banking and the money market rate spikes are part of this effort.

But what sort of ripple effects impact is all of this having on the global economy?

First, let’s take a look at economies that rely on China to consume their exports.

Bloomberg chief economist Michael McDonough tweeted this chart that shows the percent of country’s total exports consumed by China.

Read more: http://www.businessinsider.com/ripple-effects-of-chinese-slowdown-2014-2

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    11 Ugly Charts That Confirm China's Dramatic Slowdown During the National People's Congress, China's policymakers announced that it would target 7.5% GDP growth target for 2014. This is down from 7.7% growth in 2013, and the recent data shows that the economy is clearly off to a slower start to…
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    For 31-year old Beijing resident Wang Yuanzhi, talk about a bubble in Chinese property is not something to be too concerned about. "If you look at the real estate market in China, it has already seen a golden decade of extreme fast growth. There will still be room for growth…
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  • 75
    I will let you guess where we are in this "cycle". Within a fractional reserve banking system, if the Federal Reserve decreases the discount rate and the rate is lower than the long bond rate by enough of a spread, the banks get motivated to borrow at or close to the  discount rate and loan…
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