Singapore’s bank will be the big winners from the financial cooperation agreements inked with China yesterday, according to Business Times.
Asset management, foreign exchange and commodities sectors will benefit from two investment initiatives – a 50 billion-yuan (S$10.1 billion) award for institutional investment into China’s securities market; and another investment programme for Chinese investors to Singapore.
Four initiatives were announced yesterday
Bloomberg reports that China’s biggest banks have tripled the amount of bad loans written off in the first half.
Industrial & Commercial Bank of China, the world’s most profitable lender, and its four largest rivals, expunged 22.1 billion yuan (US$3.65 billion) of debt that couldn’t be collected, up from 7.65 billion yuan a year earlier. Profits still reached a record $76 billion, as provisions were set aside in earlier periods when the loans began souring.
The write-offs are bad news though – Bloomberg says analysts are worried about rising NPLs, and the threat of possible defaults.
The Financial Times reports that the law firm has been taken to task for advertising its services in a way that indicates it practices litigation in the Lion City.
China is to further internationalise its currency by allowing Singapore-based investors to buy renminbi-denominated securities, paving the way for direct trading between the two countries’ currencies, according to the FT.
Bank of Chongqing will begin selling an initial public offering of up to US$591 million today, says the Wall Street Journal, in the first listing by a Chinese bank in almost three years. Another Chinese city lender, Huishang Bank, is sounding out investors about a listing in coming weeks of up to US$1.2 billion, also in Hong Kong.
The Journal says China’s banks are raising capital as competition in the sector intensifies.
The firm wants to build assets under management by over a third in the next three years, says Asian Investor, and wants to team up with an Asian partner to reach this goal. The firm is looking for a partner to help assist in expanding its regional distribution platform and asset management capabilities.
The country’s first online insurance company, Zhong An Online Property Insurance, registered this month, according to Asia Insurance Review.
The new venture is owned by e-commerce giant Alibaba Group Holding; the social network group Tencent Holdings; and the country’s second largest insurance group, Ping An Insurance.