Mainland banks face a paucity of go-to, qualified borrowers as they attempt to make use of the RMB1.2 trillion (US$193.5 billion) of liquidity freed up by the central bank’s cut to their reserve requirement ratio, South China Morning Post reported, citing financial analysts. As the economy has slowed and debt mounted, the threat of default […]
Category: Investment
The provincial governments of Jiangsu and Anhui have postponed bond auctions after low yields failed to draw sufficient interest in the debt from commercial banks, The Financial Times reported, citing the state news affiliate Economic Information Daily. The disinterest from banks poses a problem for the finance ministry’s plan to refinance RMB1 trillion in debt […]
Margin lending in China has more than tripled to more than RMB1.7 trillion (US$274.6 billion) in the past year, The Wall Street Journal reported, citing data from WIND Information Co. Research by Macquarie Securities Group shows margin debt equal to 8.2% of the stock available to be freely traded, easily exceeding a peak of 6% […]
State-owned China Petrochemical Corp., aka Sinopec Group, has raised US$6.4 billion through a bond sale that ranked as the third-largest in Asia on record, The Wall Street Journal reported. By tapping European investors Sinopec was able borrow at costs as low as 0.5% and 1% for three and seven-year bonds totaling EUR1.5 billion (US$1.6 billion), […]
Preliminary bidders including UBS (UBSN.VTX), Temasek Holdings and BNP Paribas (BNP.EPA) have purchased a 10% stake in the state-owned Postal Savings Bank of China for at least US$3 billion, Reuters reported, citing unnamed sources. Sources said half a dozen preliminary bidders had bought into PBSC, China’s biggest bank by outlets with about 40,000 branches throughout […]