日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

USEUROPEAFRICAASIA 中文雙語(yǔ)Fran?ais
Business
Home / Business / Finance

China fights hard battle against shadow banking

Xinhua | Updated: 2013-06-29 13:50
SHANGHAI-- With interbank borrowing rates tumbling, China's financial sector is getting relief from a credit crunch partially engineered by the central bank's moves to impose financial discipline amid the runaway expansion of shadow banking.

But as regulators remain committed to a tight policy stance, the credit crunch could be just the beginning of the pain caused by curtailing shadow banking, a bandage necessary for ensuring the health of the financial system of the world's second largest economy.

The cash shortage, which pushed interbank rates to double digits last week, ate up banks' profits and erased trillions of yuan in the stock market. The People's Bank of China later calmed market panic and drastically reduced banks' borrowing costs to normal levels. However, analysts say that does not indicate a policy reversal, as regulators are keen to squeeze financial bubbles.

Shadow banking, the value of which J.P. Morgan has estimated at 36 trillion yuan ($5.86 trillion), is believed to be focus of the deleveraging process. In an economy that relies heavily on credit expansion, such tightening measures will further weaken China's economic growth, which has already slumped to its lowest level since the Asian financial crisis.

While institutes like Goldman Sachs, IMF and Standard & Chartered have trimmed their forecasts for China's growth on concerns of monetary tightening, they have also maintained that the short-term pain of squeezing bubbles could push China's economic growth toward a more sustainable model.

"The liquidity crisis is proactive regulation, not passive adjustment," said Peng Wensheng, chief economist at China International Capital Corporation. "Such moves will cool off-balance-sheet activities and keep China's financial system stable in the long run."

Cutting down shadow banking will also resonate with Premier Li Keqiang's call for the financial sector to support the real economy. China's total social financing surged 50.2 percent to 9.11 trillion yuan during the first five months, but much of the money flowed to property developers and local government financing vehicles (LGFVs) via shadow banking, leaving small and medium enterprises (SMEs) starved for cash.

According to a well-respected researcher at the Development Research Center of the State Council, LGFVs in western China would offer as much as 18 percent interest to get a loan from wealth management products (WMPs) and trust companies, the main sources of China's shadow banking.

While high yields normally entail high risk, financial institutions in China have not been hesitant in giving money to LGFVs, even though a huge proportion of LGFV-funded projects have not generated any cash flow. In the event of a liquidity crisis, lenders believe the LGFVs would be bailed out by local governments and eventually the central government.

"Therefore, curbing shadow banking will unleash funds stashed in real estate and local government financing vehicles," Peng said.

However, knocking out shadow banking will be painful.

"The liquidity crisis will spill over into the broader financial sector and the real economy," Barclays China economist Chang Jian said in a note. "The ripple effects to the WMPs market, bill financing market and the trust sector, and then to borrowers heavily reliant on the shadow banking sector, such as the local governments, SMEs, and developers, will be felt in the coming months."

Previous 1 2 Next

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
 
主站蜘蛛池模板: 国产九九精品视频 | 免费的黄网站男人的天堂 | 午夜精品久久久久久久星辰影院 | 国产主播福利精品一区二区 | 欧美a级成人淫片免费看 | 成人激情视频在线观看 | 九九久久99综合一区二区 | 国产精品外围在线观看 | 冯绍峰个人资料 | 韩漫重考生漫画画免费读漫画下拉式土豪漫 | 国产精品思瑞在线观看 | 日韩中文字幕一区 | 在线中文字幕视频 | aaa级片| 高清毛片免费看 | 日日摸夜夜爽日日摸视频 | 涩涩屋av | 欧美黄色免费网站 | av在线一区二区三区 | 超碰成人免费 | 国产亚洲一区二区三区在线观看 | 欧美高潮| 国产普通话自拍 | 日韩免费电影 | 国产电影网 | 国产午夜免费视频片夜色 | 无码色情影片视频在线看免费 | 三级网址在线播放 | 日本阿v无码观看dvd | 天天噜噜揉揉狠狠夜夜 | 国产高清性xxxxxxxx | 亚洲免费视频在线观看 | 99久久精品国产一区二区三区 | 狠狠色丁香婷婷久久综合考虑 | 在线国产欧美 | 久久久久久久国产 | 日日欧美 | 911色_911色sss主站色播 | 九九视频精品全部免费播放 | 久久精品视频在线观看榴莲视频 | 亚洲精品电影在线观看 |