NFRA’s Li Yunze says state plans to recapitalize big six banks
Chenyu Xu
As profits slow, banks can preserve capital by recognizing fewer nonperforming loans (NPLs) and reducing the provisions they hold for writing down NPLs…
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Banking (General)
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PBoC says rate cuts will have neutral impact on bank profits
This is a significant rate cut that will not only lead to a decrease in rates on existing mortgages, but will also result in substantial reductions in…
PBoC rolls out the most sweeping slate of monetary measures to date to revive the economy, but more fiscal support is still needed
Officials are now resorting to their old ways of reviving the economy by trying to directly pump up prices. The measures for monetary loosening are a welcome development…
State Council unveils broadstroke measures to prevent risks and drive growth in insurance industry
Tighter regulatory oversight from both central and local regulators means insurers will face increased compliance checks, even as they are tasked with dedicating resources…
PBoC plans to further reduce borrowing costs
This is the first time the PBoC has published an explainer alongside a credit data release. While we hope this becomes a regular practice, it’s more likely that this is a one-off measure to reassure markets following the weak credit print…
PBoC starts trading bonds
Yields on long-dated CGBs have fallen sharply this year, driven by weak corporate and household demand for credit. The PBoC intervention might buoy…
Cutting rates is getting harder
Banks have struggled to increase deposits as savers shift their funds into wealth management products and other assets with higher returns. While banks can turn to other capital-raising methods, such as bond issuance, these alternatives are generally less affordable than…
Central bank chief sees reduced financial risks
Zoey Kuang
Pan’s remarks notably omitted any discussion of the substantial decline in local government revenue – from both land sales and taxes. This means that despite lower interest payments, local authorities still don’t have the resources to service debt obligations…
PBoC stress tests bond exposure
The prospect of significant interest rate increases in the near term appears remote. Given the downward pressures on China’s economy, we expect rates will move gradually lower for the next few years…
Anbang Insurance begins bankruptcy proceedings following government-led restructuring
As Anbang Group enters bankruptcy proceedings, creditors may pursue legal claims and settlements from the company’s remaining assets. Meanwhile, the CISFC is likely to expedite efforts to divest its stake in Dajia Insurance Group, having completed its primary bailout mission…