Click here to close now.




















Welcome!

News Feed Item

FXPRIMUS Market Brief of the Week: More Stringent Rules to Curb Chinese Shadow Banking Activities May Come

SINGAPORE, SINGAPORE -- (Marketwired) -- 02/24/14 -- In FXPRIMUS' Market Brief of The Week for 24 February, the brokerage firm's Senior Economist, Jimmy Zhu, looks at Chinese banking regulators' comprehensive exercise in curbing shadow banking.

Economic Insights

Chinese Equities Slumped on Slowing Home Prices, Liquidities Withdrawal

Chinese banking regulators have been carrying out a comprehensive examination on its wealth management products. The China Banking Regulatory Commission (CBRC) required banks in different provinces to provide solutions on ways to curb shadow banking activities. The cross-sector inspections intend to find out the root problem, even if it will get legal jurisdictions of the banks involved.

Chinese lenders, including Agricultural Bank, Bank of Communications, China Merchants and Citic, suspended loans to developers for supplies and constructions until the end of March, or even longer according to news or rumours these days. This may make it harder for developers to refinance maturing bonds and trusts, which could create financial-system risks if there are any. Developers have 33.7 trillion Yuan of offshore bonds. About 6.6 trillion Yuan property trusts may mature in 2014. We know that this group of companies are very active in shadow banking sectors, supported by issuance of large amount of wealth management products.

The People's Bank of China (PBOC) also redeemed 450 billion Yuan of reverse repos from banks last week, showing its determination to maintain stable Chinese money markets following January's 23% jump in new loans. The central bank injected the same amount of liquidity during previous two weeks. Reverse repos emerged as the PBOC's key policy tool in managing short-term market liquidity. From the reaction of money markets, investors did not view it negatively, as the 7-day repo rate recently dropped.

To view the figure accompanying this press release, please visit the following link:

http://media3.marketwire.com/docs/fxp224-F1.pdf

Since third quarter last year, we have been talking about relevant regulatory authorities to rectify shadow banking industry, and relevant rumours spread like wildfire. Subsequently it has been exposed by the media on strengthening of shadow banking issues related notice (No. 107 & 108 documents).

China's efforts to deleverage its economy may be threatened by a jump in Yuan loans. New Yuan loans surged 23% YoY last month to 1.3 trillion Yuan, helping to boost total outstanding loans to 30 trillion Yuan from 14.3%, possibly because the bank regulator aimed to maintain market funding amid a trust-loan slump. Still, any growth above 14% for all of 1Q could boost the loan-to-GDP growth multiplier to 1.9x from 1.8x in the last two quarters, based on estimated consensus. China's social financing only increased 1.4% YoY in January to 2.6 trillion Yuan. Trust loans tumbled 49% and corporate bonds fell 85%, overshadowing the 23% jump in new loans. Trust loans and bonds' share of social financing also dropped to 5.9% from 17.1% last year. A government clampdown on shadow banking and tight liquidity may weigh on corporate funding this year.

The spread between three-month Shibor and Overnight Index Swap has widened to 170 Basis Point (BPS) from 104 BPS three month ago and 115 BPS six months ago because of a surge in Shibor. The interbank rate jumped to 5.6% from 4.65% three month ago and 4.69% six months ago because lenders are asking for higher risk premiums, which suggested concerns about possible insolvencies. The PBOC's acceptance of money-market volatility may heighten these fears.

Top news this week


U.S. New Home Sales
I expect figures to come in at 400K
U.S. Pending Home Sales MoM
I expect figures to come in at -7.5%

ABOUT FXPRIMUS

FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools. FXPRIMUS truly is The Safest Place To Trade.

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ET...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...