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rffrydr
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rffrydr
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Joined: 30 Oct 2005
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 Posted: Thu Aug 09, 2007 6:21 am Post subject: |
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More money not in our markets:
AFter colonial infrastructure investments (both inward and outward) comes stuff like this, moving banks to first class:
| Quote: | HEADLINE: China poised to give more cash to banks
BYLINE: By RICHARD MCGREGOR
DATELINE: BEIJING
BODY:
China is preparing a second round of billion-dollar cash injections from its bulging foreign exchange reserves into state banks, according to official media reports in Beijing.
China Development Bank (CDB), the first of China's policy banks to be made to operate on a commercial basis, would receive a Dollars 20bn capital injection as part of its restructuring, the China Daily reported. CDB declined to comment yesterday.
CDB, along with Temasek, the investment arm of the Singapore government, last month agreed to buy into Barclays Bank in the midst of the UK group's takeover bid for Dutch bank ABN Amro.
The second institution being eyed for a capital injection is the Agricultural Bank of China (ABC), one of the country's "big five" state lenders and the last to be restructured in readiness for an overseas listing. The Economic Observer reported at the weekend ABC would receive a capital injection of Dollars 40bn.
Both CDB and ABC would receive their money through Central Huijin Investment, which has operated as the investment arm of the People's Bank of China, the central bank.
However, the way in which any money is injected into the institutions might be affected by the changing status of Huijin. The investment arm is expected to be put under the control of China's new state investment corporation, which is being set up to manage part of the Dollars 1,330bn in reserves.
Ploughing Dollars 40bn into ABC would help lift the bank's capital adequacy ratio to 8 per cent, in line with international standards, which China has signed up to. But as much as Dollars 76bn more would be needed to reduce ABC's non-performing loan level from 23.4 per cent at the end of 2006 to the desired 5 per cent.
CDB's asset quality, by contrast, is among the healthiest of all Chinese banks, with non-performing loans of 0.68 per cent as of June this year.
As a policy bank, CDB's loans have mainly been extended to large state-owned enterprises and infrastructure projects favoured by the central government.
Under Chen Yuan, its chairman, CDB has become much more ambitious in recent years. The bank has expanded its domestic loan book rapidly and taken the lead on lending to Chinese companies doing business in Africa.
China has traditionally used capital injections from its foreign exchange reserves in recent years to recapitalise state institutions and prepare them for listings overseas.
China injected a total of Dollars 60bn into the Bank of China, China Construction Bank and Industrial & Commercial Bank of China before their successful initial public offerings offshore.
LOAD-DATE: August 6, 2007 |
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rffrydr
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| Posted: Thu Jun 07, 2007 6:49 am Post subject: |
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Exactly that has scared me out of a Aussie short awhile back. BHP, that's the crown jewel, that's THE ASX. Seems national pride played no small part in the scuttling of Qantas takedown. BHP--that would stretch the limits of liberalism.
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Goodfella
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Joined: 14 Oct 2005
Posts: 301
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| Posted: Thu Jun 07, 2007 5:10 am Post subject: |
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Analyst says BHP Billiton could get China bid:
By Sarah Turner
Last Update: 5:42 AM ET Jun 7, 2007
UK:BLT1,280.00, +17.00, +1.3%) could be in line for a bid from the recently-formed Chinese State Investment Company, according to a report in the Herald Sun newspaper. The report, which cited Peter Quinton, chief of research at Australian stockbroker Bell Potter, said the Chinese fund's recent investment in U.S. private equity firm Blackstone could be a precursor to other deals. One of these deals could be an acquisition of BHP Billiton to relieve Chinese concern over the availability over commodity supplies, the report said. BHP Billiton shares rose 1.8% in London. |
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rffrydr
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| Posted: Sat May 26, 2007 1:28 pm Post subject: |
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3 billiion Blackstone investment was 9.9% of Blackstone--always a numbers game.
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rffrydr
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| Posted: Mon May 14, 2007 6:52 am Post subject: |
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Only problem, Shanghai up!
Easier, and cheaper, to invest in stockmarket than developing assets: problem state run enterprises are now in the game.
Inflation above deposit rates for three months. Pressure still on.
http://news.xinhuanet.com/english/2007-05/14/content_6096446.htm
Milk prices worldwide are rising at the fastest rate ever. Skim-milk powder, the benchmark for world trade, has risen 60 percent in six months to a record $1.58 a pound May 4 on the Chicago Mercantile Exchange.
``Food prices have been at extremely elevated levels in recent months, and it looks like companies have been able to pass along higher energy prices to consumers,'' said Nick Kounis, an economist at Fortis Bank in Amsterdam who formerly worked at the U.K. Treasury.
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HenryTo
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Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
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| Posted: Sun May 13, 2007 11:56 pm Post subject: |
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Great move on the part of the Chinese government, as expected. This is the only way to cool down (or at least slow the "melt-up") the Chinese equity market without significantly restraining the "real economy" as well.
Given that the markete cap of the Hong Kong stock market is about on par with China's, it should be able to absorb a tremendous amount of liquidity flowing from China. This should prop up the Hong Kong Dollar as well. Next stop will be US listed Chinese companies, and then perhaps the UK and US stock markets as well. |
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rffrydr
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