China finance correspondent
Gabriel's Feed
May 20, 2014

Money won’t come cheap for China banks’ $120 bln funding spree

SHANGHAI/HONG KONG, May 21 (Reuters) – Chinese banks are
poised to raise a record $120 billion in the next two years to
shore up their balance sheets in the face of slowing growth and
rising bad debts, but the funds could prove expensive and hurt
earnings as investors demand a premium.

For the first time, banks will raise capital by issuing
preference shares and other so-called hybrid securities, a
funding technique that avoids the need for issuing ordinary
shares into a badly hit stock market.

May 16, 2014

China Development Bank loan growth at four-year low

SHANGHAI, May 16 (Reuters) – China Development Bank Corp
(CDB), China’s biggest policy lender, reported its
weakest annual loan growth in at least four years on Friday,
highlighting government efforts to slow credit growth and allow
market forces to determine who gets financing.

China’s policymakers have said they intend to control credit
growth to stymie the buildup of financial risk and shift the
economy’s expansion model away from excess reliance on
investment fuelled by cheap loans.

Apr 27, 2014

In wealthy Chinese city, debt guarantees spark default contagion

SHANGHAI, April 28 (Reuters) – A network of loan guarantees
set up to improve companies’ access to credit in one of China’s
richest districts is creating new risks of default as some debts
sour, another sign of how private firms are bearing the brunt of
an economic slowdown.

Chinese media have reported on a credit crunch developing
among steel and textile manufacturers in Hangzhou city, 175 km
(110 miles) south of Shanghai in Zhejiang province, as the
failure of some to repay loans pushes their burden onto
healthier firms.

Apr 18, 2014

China issues banking rules to strengthen online payment security

SHANGHAI, April 18 (Reuters) – China will limit the amount
of money consumers can transfer to third-party online payment
platforms, aiming to protect banks and consumers from fraud amid
an explosion of online and mobile payment transactions.

Banks will be obliged to limit how much money an individual
can transfer to platforms such as Alibaba Group Holding’s Alipay
per transaction or on a single day, based on the person’s
financial status, showed a document issued by the central bank
and banking regulator.

Apr 16, 2014

China IPOs may restart earlier than expected – sources

SHANGHAI, April 16 (Reuters) – China’s securities regulator
has ordered underwriters to update application materials for
firms waiting to list, sources told Reuters on Wednesday,
raising hopes that an eight-week stall in initial public
offerings on mainland China stock exchanges will end soon.

The official Shanghai Securities News reported Wednesday
morning that the China Securities Regulatory Commission (CSRSC)
has told underwriters to complete their submissions of revised
disclosure materials as early as the end of this week. Four
sources at investment banks confirmed to Reuters they had
received CSRC instruction to update their disclosures with the
latest 2013 financial statements.

Apr 16, 2014

China defaults mount among inter-company loans

SHANGHAI, April 16 (Reuters) – Chinese companies that have
lent money to other companies are facing a potential wave of
defaults, with several listed firms already reporting missed
loan repayments.

Shipbuilder Sainty Marine Corp Ltd on Tuesday
became the latest listed firm to report that it had failed to
receive principal and interest repayments on a 900 million yuan
($144.7 million) loan to a property developer.

Apr 14, 2014

Yangtze River Delta becomes epicenter for China credit risk

SUZHOU, China (Reuters) – Suzhou, an ancient city in Jiangsu province 100 km (60 miles) west of Shanghai, lives in legend as one of China’s most beautiful, famous for its elegant gardens and charming canals.

More recently, it became an industrial powerhouse, sitting at the heart of the Yangtze River Delta region that, along with the Pearl River Delta in Guangdong, drove China’s economic boom.

Apr 10, 2014

China to allow cross-border Hong Kong, Shanghai stock investment

SHANGHAI, April 10 (Reuters) – China will allow cross-border
stock investment between Shanghai and Hong Kong, regulators said
on Thursday, a small step towards opening China’s capital
account and letting Chinese individuals buy foreign equities
overseas.

The move represents a potential goldmine for brokerage
services, and the news drove shares of securities firms
sharply higher.

Apr 8, 2014

China’s next bond default looms as polyester firm declares bankruptcy

SHANGHAI, April 8 (Reuters) – A small manufacturer of
polyester yarn based in China’s wealthy Zhejiang province has
declared bankruptcy, threatening its ability to meet an
interest payment on a high-yield bond due in July.

Zhejiang Huatesi Polymer Technical Co Ltd asked a local
court for bankruptcy protection in early March, according to an
announcement on the website of the Anji County People’s Court.

Apr 4, 2014

China regulator to require bank stress tests: paper

SHANGHAI (Reuters) – The China Banking Regulatory Commission (CBRC) has said it will conduct regional and national stress tests after banks saw a spike in bad loans last year, the Shanghai Securities News reported on Friday, reflecting growing concerns over credit risk.

“All (CBRC) offices, supervisory departments, must organize stress tests of banking institutions in a timely manner so as to analyze the impact of unfavorable situations in individual banks and the banking system and urge banking financial institutions to make emergency plans,” the regulator was quoted as saying in guidelines sent to banks in March.