Chinese Brokerage Firms Are Evolving Into Shadow Banks

wuhan china shadow

Photo: toehk / Flickr

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China’s brokerages turn shadow banks – FT.comway it was described to me, by someone generally very bearish, is that it has the potential to spiral into a huge mess but it is not yet horrible//  The rise of brokerages as shadow banks has been remarkably fast, which is also a worry. Nevertheless, looked at in absolute terms, the entrusted funds at brokerages are still just 1.6 per cent of overall bank assets. “If you want a more comprehensive capital market in which the market share of banks drops, you have to allow things to happen outside the banking sector,” said an analyst who covers brokerages, speaking on the condition of anonymity. “It’s something that people should pay attention to. But it’s not alarming yet.”

Banks Tap Credit Potential to Meet Surging Capital Demand-Caijing – Domestic banks’ lending capacity will be put to the test in 2013. Statistics show that the National Development and Reform Commission approved projects with a total value of 7 trillion yuan in the second half of 2012, portending a huge demand for capital by the real economy this year. The banks’ lending capacity has been drained by years of enormous lending, with loan-deposit ratios and capital adequacy ratios barely meeting regulatory standards. As a result, tapping credit potential to provide abundant capital for urbanization and stabilise macroeconomic growth has become a challenge facing policymakers and domestic banks.

China Banking Regulator Warns over Default Risks-Caijing – Chinese banking industry, with assets of more than 130 trillion yuan, is facing risks of a default as outstanding loans build up, Chairman of the China Banking Regulatory Commission warned, according to the 21st Century Business Herald, citing his remarks at an annual working meeting concluded in mid January. Total loan balances held by China’s financing institutions are around 67 trillion yuan, with half made to local governments through financing vehicles, and to property, business clusters as well as industries with overcapacity, Mr. Shang reportedly said. characterised as “highly concentrated” and “broadly impacted”, the loans need to be “heavily fortified” and require “classified polices”, he said.

Analysts Debate Meaning of Central Bank’s Newest Regulatory Tool – Caixin – The short-term nature of SLO and the great flexibility the central bank has when using the tool has a large impact on interest rates as well. China International Capital Corp., an investment bank, predicted in a report that the yield of seven-day repos in the upcoming few months would fall as investors fret less about liquidity risk. Moving forward, the central bank may seek to create a capital pricing mechanism, which allows it to affect interest rates for the long term by regulating those for the immediate future, the state-owned bank’s capital trader said. “From now on, people will be pay more attention to the yield of central bills, and the interest rates of repos will be more important,” he said.

Property prices set to rise as supply tightens[1]| – China’s property prices will continue to rise in 2013, fuelled by tighter supply, quickening urbanization and an improved economy, according to the latest report on the market. Figures from REICO, the research institution jointly created by the China Real Estate Chamber of Commerce and the China Urban Reality Association Fund, suggest the country’s housing inventory will be lower than that of 2012, due to a slide in new construction since the third quarter of 2011 and quickening sales last year. New home building in Beijing was down 24.1 per cent, and in Shanghai, 26.9 per cent, year-on-year in 2012, according to REICO, meaning that shrinking supplies and robust sales have strengthened market expectations of further price hikes in 2013.//expectations of rising prices certainly rising

钟南山谈大气污染:任何人都跑不掉 比非典可怕得多_资讯频道_凤凰网 Zhong Nanshan, Dr who oversaw SARS research/treatment, tells CCTV the air pollution crisis is worse than SARS crisis

China, GitHub and the man-in-the-middle |– The attack happened on a Saturday night. It was very crude, in that the fake certificate was signed by an unknown authority and bound to be detected quickly. The attack stopped after about an hour. The whole episode seems rather irrational. It’s conceivable that one or several individuals identified on these lists as enemies of a free Internet decided to take action into their own hands. They are the technical people behind the Great Firewall and so they would clearly be capable of implementing this attack. They had a motive in that they were personally being targeted by the people behind the White House petition. And they had no other options since they had been barred from blocking GitHub completely. While the attack was short-lived, it is possible that passwords of many GitHub users were recorded. It’s also possible that the IP addresses of users accessing certain URLs, such as these lists of GFW contributors, were tracked. The people organising these initiatives should take great care.

China, Japan and the Islands: What Do the Tensions Mean? | ChinaFile Beta – What these island disputes suggests about China is that its search for new wealth and power, fuqiang 富强, born out of an understandable urge to protect “the motherland” from foreign predation as the Qing Dynasty collapsed, may have now passed something of a milestone. Initially inspired by a defensive impulse, one wonders whether it is not now gaining a new and unwelcomed aggressive dimension. If so, should this new impulse not be tempered, it could end up as a serious impediment to the ongoing rise of a China that is viewed as “peaceful” and embraced by its neighbours. This would not only be harmful to China and the Chinese people, but to U.S.-Chinese relations as well as all the people of this increasingly dynamic and important region of our newly globalized world.

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