Sunday, November 18, 2007

China curbs bank loans to cool investment fever

--In recent weeks, regulators in China have quietly ordered commercial banks to freeze lending through cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end of this year, according to bankers in several cities. These bankers say that to comply, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are canceling loans and credit lines with businesses and individuals. --The order on loans may have a particularly disruptive effect on foreign banks with incorporated subsidiaries in China. Foreign bankers occupy only a corner of China's financial system and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y say cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are eager to remain on good terms with regulators. Foreign banks in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 key Shanghai market -- including Britain's HSBC Holdings PLC, New York-based Citigroup Inc., Standard Chartered PLC of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 U.K. and Hong Kong's Bank of East Asia Ltd. -- controlled 6.2% of industry deposits at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end of September and more than 16% of loans outstanding, according to official figures. --Since foreign banks have fewer deposits than cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir more entrenched Chinese counterparts and regulators are already pushing cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365m to keep loans outstanding at 75% of deposits, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y have very little financial flexibility. Their earnings could also take a hit if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y need to get compliant with rules by borrowing in local money markets or selling loans. --The latest lending directive is a reminder of April 2004, when cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 China Banking Regulatory Commission said it offered "guidance" to banks cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y slow new loan approvals. It quickly backed off when economists howled that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government should treat banks like commercial enterprises, and instead, authorities lifted interest rates for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 first time in nine years.

No comments: