Banking
Citibank is going to issue personal unsecured loans
2009-11-11
Citibank today announced that it will issue unsecured loans to individuals in Beijing. The maximum loan amount can reach RMB 500,000, mainly used for personal education, car purchases, and weddings. This kind of product is quite similar to the one provided by the finance companies which are going to form in the near future. However, Citibank will charge account management fees, and an 8.8% interest rate which is much higher than the 5.31% set by the Central Bank.
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China Minsheng Bank may suffer RMB 887 million losses from investment in UCB
2009-11-10
As UCB has been taken over by the FDIC, China Minsheng Bank may suffer RMB 887 million losses from its first overseas investment. However, Minsheng announced that it has already allocated an RMB 824 million allowance for assets impairment, so the failure will not affect its IPO process in the HK market.
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The performance of the China banking industry is improving
2009-11-09
Benefiting from the recovery of China’s economy, the China banking industry is expected to realize an approximately 20% profit increase in the coming year, according to a report published by the Bank of Communications.
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CCB completes the acquisition of AIG HK business
2009-11-03
CCB completely acquired the AIG HK business by the end of October and changed the company name to CCBAF. This deal will bring more than 0.5 million credit card users and over 5% of the HK credit card market share to CCB, and will increase CCB market competition capability in both the HK and Macao markets.
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Total assets of domestic banking institutions have increased to RMB 75 trillion
2009-10-30
According to the statistics from China Banking Regulatory Commission, by the end of September 2009, domestic banking institutions have increased total assets to RMB 75 trillion and total liabilities to RMB 71 trillion, with 26.9% and 27.5% growth rates respectively.
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China experienced unexpected growth in newly issued loans of RMB 516.7 billion in September
2009-10-15
Statistics show that newly issued loans increased to RMB 516.7 billion, which far exceeded the market expectation of RMB 400 billion. According to central bank’s calculation, big bank loans only increased by RMB 120 billion, while small and medium sized bank loans increased by approximately RMB 400 billion.
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ICBC announced a tender offer to ACL Bank Public Company Ltd.
2009-10-12
In order to expand its businesses in the Thailand market, ICBC announced a tender offer to ACL bank on 29th September at the price of THB 11.5 per share with a 15% premium. ICBC indicated that it has to achieve 51% stakes to complete its offer and delist the company. The total deal volume has increased to RMB 3.7 billion.
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Minsheng bank will start IPO process and aim to collect more than HKD 30 billion in funds
2009-10-12
China Minsheng bank announced it will issue 3.32 to 3.818 billion H shares next month at a price of over RMB 8 per share. This new issue in the HK market will help Minsheng bank to raise about HKD 30.5 billion in funds which will further its capital adequacy and future financing in both the A stock market and the HK market.
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CCB International establishes a healthcare industry fund
2009-09-28
On 23rd September, CCB International announced that it cooperated with CYPC in establishing a new fund focused on domestic pharmaceutical manufacture, medical equipment, medical institutions, healthcare, and the medical services industry. This is the first healthcare industry fund holding by banks in China.
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China Huijin increases stakes in three top commercial banks
2009-09-28
Central Huijin Investment has increased its stakes in ICBC, BCB, and CCB on the secondary market up to 35.41%, 67.53% and 57.08% respectively since last September in order to stabilize the sliding stock market.
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Business loans for M&A are allowed to be operated by foreign banks
2009-09-22
After the government launched the ‘Risk Administration on M&A Loans Provided by Commercial Banks’ in 2008, local banks achieved a large market share in M&A. However, BEA and City Bank also got approval from the regulatory institute yesterday, indicating foreign banks are finally allowed to operate in this area after more than a half year of preparation.
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Bank of China will take over the incomplete financing program of Huaneng Power left by Lehman Brothers
2009-09-22
Affected by the financial crisis and the bankruptcy of Lehman Brothers, Huaneng Power International Inc. is now facing an approximately RMB 15 billion refinancing problem for its Singapore business. Bank of China announced that it will lead a financial group for this financing issue.
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The big 4 state-owned banks are increasing foreign currency interest rates as the supply shortens
2009-09-20
Recently, the big four state-owned banks have increased foreign currency interest rates. This can be explained in the following ways:
- Some analysts indicated that ‘hot currency’ is not expected to flaw into China in the following months
- People are not willing to deposit foreign currency in a bank
- Increased foreign currency loans increased the market demand
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ICBC finished the first cross-border RMB trade settlement deal
2009-09-17
The branch of ICBC in Shenzhen cooperated with China Export & Credit Insurance Corporation to provide RMB export credit insurance to the business of Zhongxing Telecommunication Equipment Corporation in Indonesia. This is the first cross-border RMB trade settlement deal in China.
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Banks are available to provide refinancing services to pharmaceutical providers
2009-09-16
The branch of China EverBright Bank in Xi’an began to provide a newly created financing service to pharmaceutical providers yesterday. Although the deal volume of these pharmaceutical providers is very high, they always face a long-term fund repayment period. Through the service provided by the China EverBright Bank, these pharmaceutical providers can finance 80% of the receipt.
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