Nov. 26, 2015, 4:34 AM
- China's "national team" owns at least 6% of the mainland stock market following the summer rescue to prop up prices, putting even more of the $4.2T bourses into state hands, FT reports.
- Government rescue funds were corralled into buying shares when the equity markets went into meltdown over summer. The intervention seems to have succeeded so far - the Shanghai Composite has since recovered by 28% from its last low point in late August.
- Top ten purchases in Q3 by China Securities Finance Corp: Bank of China (OTCPK:BACHY), Industrial and Commercial Bank of China (OTCPK:IDCBY), Agricultural Bank of China (OTCPK:ACGBY), China Construction Bank (OTCPK:CICHY), Bank of Communications (OTCPK:BCMXY), China Petroleum & Chemical Corp (NYSE:SNP), China Everbright Bank (OTC:CBVHY), China Minsheng Banking (OTCPK:CMAKY), BOE Technology Group and PetroChina (NYSE:PTR).
- Shanghai -0.3% to 3,636.
Oct. 9, 2012, 6:54 AMAmong the movers in Shanghai's 2% rise last night was Industrial & Commercial Bank of China (IDCBY.PK) - the world's largest by market cap - rising 1.3% after state-owned Central Huijin Investment upped its stake in the lender to 35.43%. Securities firms were the outsized gainers amidst chatter of more steps to direct the country's savings into equities. | Oct. 9, 2012, 6:54 AM
Aug. 22, 2012, 12:28 AM
When will China's big 4 banks begin to recognize what must surely be increasing levels of nonperforming loans? Essentially government arms, the lenders have been pushed to make loans to local governments for favored, but not necessarily economic projects. China Merchants Bank (the nation's 6th largest) reported an NPL ratio of 0.56%, unchanged from last year. "Hilarious," tweets Patrick Chovanec.| Aug. 22, 2012, 12:28 AM | 2 Comments
Jun. 7, 2012, 2:35 AM
China delays tightening bank capital rules until next year, with new draft rules from the China Banking Regulatory Commission that seek to set "reasonable" schedules for banks to meet capital targets in a way that helps "maintain appropriate credit growth." Shares of Chinese banks climbed.| Jun. 7, 2012, 2:35 AM
Mar. 6, 2012, 5:54 AM
Goldman Sachs (GS) is free to sell its shares in Industrial and Commercial Bank of China (ICBC) now that the lock-up period has ended, says Yang Kaisheng, ICBC's president. Reports are circulating that Goldman is getting ready to further reduce its stake, but is unlikely to completely exit the investment. (previously)| Mar. 6, 2012, 5:54 AM
Jan. 12, 2012, 3:54 PM
Jiang Jianqing, the chairman of ICBC (IDCBY.PK) - the world's largest bank by market cap - sees China diversifying its $3.2T in fx reserves into stocks, enterprises, and other assets as it moves away from almost only debt instruments. ICBC may be part of that, borrowing some of the stash to help finance overseas projects.| Jan. 12, 2012, 3:54 PM
Oct. 12, 2011, 3:31 PM
Late to the party, but still of interest, Sanjay Jain of Credit Suisse is bearish on Chinese banks, figuring their non-performing loans may rise to 8-12% in coming years - completely eradicating their equity. While the banks may look attractive at current P/B ratios, Jain thinks 2012 earnings could be wiped out, making the "cheap" valuation not so.| Oct. 12, 2011, 3:31 PM
Oct. 11, 2011, 11:30 AM
"The government stepping in to shore up the banks, when two months ago people thought there was nothing wrong with the Chinese banks, should tell you just how seriously this situation is deteriorating,” says Jim Chanos. "The property market is what investors ought to be watching ... (and it's in the) first parts of a very serious pullback."| Oct. 11, 2011, 11:30 AM | 2 Comments
Aug. 18, 2011, 7:42 AMHot fund manager Rajiv Jain begs to differ with consensus forecasts for big gains in beaten down Chinese banking shares. "Non-performing loans are going to be shockingly high," he says, "if you look at the accounting, I don't see how anyone could put a penny there." China fin'l ETF: CHIX -11.6% YTD. | Aug. 18, 2011, 7:42 AM