Posts Tagged ‘China Banking Regulatory Commission’

China Announces Even Tighter Restrictions On Loan Growth

China Announces Even Tighter Restrictions On Loan Growth

Courtesy of Vincent Fernando at Clusterstock/Business Insider 

business insider on china

The China Banking Regulatory Commission (CBRC) issued a new post on their website Saturday explaining new regulations aimed at tightening both personal and working capital business loans.

China Daily:

Banks must set a lending quota after "prudent calculation" of borrowers’ "actual demand" and must not lend excessively,

Banks are also required to improve risk control after granting loans and to be aware of factors that might influence the repaying capabilities of borrowers through inspections and monitoring, the statement said.

For personal lending, the CBRC asked banks to be more sophisticated in the management of the lending process, especially on the use of the loans, according to the regulation.

Borrowers will not be able to obtain loans without declaration of a specific use, and they should meet bank representatives in person to avoid false claims, according to the CBRC.

These new regulations actually went in effect on February 12th, despite the Saturday web site release. It seems the regulator is trying to explain themselves further, or was just slow.

 


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China: Lending Restrictions and Beijing’s Predicament

China: Lending Restrictions and Beijing’s Predicament

Courtesy of John Mauldin, Outside the Box

Solar Eclipse Observed in Asia

China has long been a mystery to foreign investors. Deeply involved in trade and commerce since the ancient days of the Silk Road, China has continued to maintain the appearance of closed economic borders and, even past these hardened gates, undeniable risk. Like any investor, you’ve probably been tempted to look at the prospects, and you’ve probably been met with a barricade of warnings about corruption and internal strife that quickly bounces you away. In the case of this sleeping dragon, knowing isn’t half the battle, the battle is in knowing.

I want to share with you my source for what is really going on globally – I get it from my friends at STRATFOR. They’ve got a unique way of measuring past events and analyzing geopolitical foundations to project the future. It’s not investment advice – it’s the geopolitical information you need to understand a region before you evaluate any investment opportunities.

This week I’m including an article with STRATFOR’s take on recent developments in Chinese banking restructuring. Give it a read and sign up for their free intelligence reports here.

John Mauldin
Editor, Outside the Box

China: Lending Restrictions and Beijing’s Predicament

Stratfor Today | January 20, 2010 | 1808 GMT

China Banking Regulatory Commission chief Liu Mingkang at the Asian Financial Forum in Hong Kong on Jan. 20

Liu Mingkang, head of the China Banking Regulatory Commission (CBRC), said in an interview Jan. 20 that several Chinese banks had been asked to restrain their lending after proving to have inadequate capital reserves. Chinese media reports claimed that new bank loans so far in January have risen to as high as 1 and 1.5 trillion yuan ($146-$220 billion) — approaching or equaling the massive hike in January 2009. As a result, several major Chinese commercial banks (whose names were not given) were given oral commands to stop new lending for the rest of the month.

While the regulators will strive to control credit flows, the broader Chinese imperative to maintain growth at any cost contradicts the ability to preserve loan quality and allocate capital efficiently.

Under the guidance of the central government, bank lending — the dominant form of financing in China — has skyrocketed in the past year to spur growth, fend…
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Zero Hedge

Peter Schiff: Don't Listen To What The Fed Says; Look At What The Fed Is Doing

Courtesy of ZeroHedge View original post here.

Via SchiffGold.com,

The Fed continues to talk tough about fighting inflation.  And the markets seem to be listening. But in his podcast, Peter Schiff said you need to look at what the Fed is actually doing. And it’s not doing much.

Despite a big rally in the stocks on Friday, the stock market finished its sixth consecutive week in the red. It’s the longest streak of consecutive losses since June of 2011.

Peter said despite Friday&rsq...



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Phil's Favorites

Where Are We in the Cycle?

 

Where Are We in the Cycle?

Courtesy of 

Where are we in the cycle? It’s a hard question to answer. Inflation is high but interest rates are low. The stock market is getting crushed but the economy is okay. When you put everything together, some pieces of the puzzle seem very out of place.

Ben and I went on Derek Thompson’s Plain English podcast to discuss all of this.

I’ll give you the bad news first. It’s over.

Over the last decade, the defining feature in financial markets has been easy money. Investors were willing to subsidize money-losing companies as long ...



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ValueWalk

Robinhood CEO: Whenever People Think Crypto Is Over, People Build New Products

By Jacob Wolinsky. Originally published at ValueWalk.

Following is the unofficial transcript of a CNBC exclusive interview with Robinhood Markets Inc (NASDAQ:HOOD) CEO Vlad Tenev on CNBC’s “Power Lunch” (M-F, 2PM-3PM ET) today, Tuesday, May 17th. Following is a link to video on CNBC.com:

Whenever People Think Crypto Is Over, People Build New Products: Robinhood CEO Vlad Tenev

KATE ROONEY: Alright, thanks Julia. Vlad, it’s great to see you in person. You just got off stage. We’re here at the Permissionless Conference, which is a crypto conference and we’ll get to some of the news you had out today. But it is good to see you. Thanks for joining ...



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Digital Currencies

Stablecoin volatility shows an urgent need for regulation to protect consumers

 

Stablecoin volatility shows an urgent need for regulation to protect consumers

Shutterstock/David Sandron

Courtesy of Matthew Shillito, University of Liverpool

Some cryptocurrencies have always been fairly volatile, with values soaring or plunging within a short space of time. So for the more cautious investor, “stablecoins” were considered the sensible place to go. As the name implies, they are designed to be a steadier and safer bet.

At the moment though, that stability is proving hard to find. The value of o...



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Chart School

Powell doing a Volker to crush inflation, yeah right!

Courtesy of Read the Ticker

In 1979, Volker was equal to Goliath as he had a good chance of crushing inflation, today the debt Goliath is massive.

In the video below David Rosenberg explains the FED is on a 'Volker' mission to crush inflation no matter what happens to risk on assets like stocks.

David Rosenberg thinking is challenged when ask about the current US debt levels, as Paul Volker did say that he could not have crushed inflation with the debt levels of today.  David Rosenberg simply says the FED is going to hike no matter what, until something very serious breaks.

The question remains will something break in the markets after 1%, 1.5% or 2% hikes. No one knows. But as the US debt to GDP% is over 120% this suggests s...



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Kimble Charting Solutions

Microstrategy Stock Crash Gets Crypto Bulls Attention, Key Support Test In Play!

Courtesy of Chris Kimble

Microstrategy is a tech company selling its enterprise software solutions and analytics (platform)… but it is better known for something else…

It’s CEO Michael Saylor is a bitcoin whale. And he has been investing significant amounts of the companies reserves in Bitcoin. He even secured a term loan using bitcoin as collateral.

So Microstrategy is a bitcoin play as much as anything else. Well, bitcoin and the cryptocurrency space has been hit hard of late, with Bitcoin falling under $30K and other crypto coins tanking.

This is also illustrated through today’s “monthly” chart of ...



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Biotech/COVID-19

China's COVID crisis and the dilemma facing its leaders, by experts who have monitored it since the Wuhan outbreak

 

China’s COVID crisis and the dilemma facing its leaders, by experts who have monitored it since the Wuhan outbreak

A Shanghai refuse worker shows the strain of the month-long COVID lockdown. Shutterstock

Courtesy of Jane Duckett, University of Glasgow; Meixuan Chen, University of Glasgow, and William Wang, ...



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Politics

5 justices, all confirmed by senators representing a minority of voters, appear willing to overturn Roe v. Wade

 

5 justices, all confirmed by senators representing a minority of voters, appear willing to overturn Roe v. Wade

An unscalable fence around the U.S. Supreme Court, on May 7, 2022, set up in response to protests against the possible overruling of Roe v. Wade. Jose Luis Magana / AFP/Getty Images

Courtesy of Kevin J. McMahon, Trinity College

If the leaked Supreme Court decision on abortion is to be believed, five justices have ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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