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Goldman Is Selling The Last Of Its Stake In A Chinese Bank, And Communist Officials Are Probably Pretty Annoyed Goldman Sachs bought a stake in the Industrial and Commercial Bank of China before it was cool — before it had the 2nd largest IPO in the history of the world in 2006, and before it was the largest bank in the world by market cap.
Initially, Goldman owned 4.9% of the bank, whose stock is [...] (Reuters) – Chinese lenders accounted for almost a third of global bank profit last year, up from 4 percent in 2007, as they grabbed market share given up by struggling European peers, according to The Banker magazine’s annual rankings. Three Chinese banks topped the profit table, led by Industrial and Commercial Bank of China (ICBC) (601398.SS) for the second successive year, with pretax earnings of $43.2 billion, according to The Banker. ICBC was followed [...]
The balance sheet recession that seems to have correctly diagnosed the problem facing Japan (and now Europe and the US) – explicitly causing debt minimzation as opposed to profit maximization – seems to be taking hold. However, it appears this death-knell for credit-created growth is now being seen in China – as AlsoSprachAnalyst interprets “people are not borrowing, but selling assets to pay down debts, and/or holding cash“. What is [...] Here, we have been saying about debt deflationin China, where people are not borrowing, but selling assets to pay down debts, and/or holding cash. In the situation as serious as in the Great Depression or in the recent Euro crisis, we could see bank run, like the ratherslow motion one in Greece. Bizarrely, one of the bank runs which has recently happened took place not in Europe, but, yes, in [...] via WSJ:
Some of China’s biggest banks have cut off a handful of their European counterparts from borrowing and derivatives trading as they seek to reduce their exposure to the simmering crisis on the Continent, people familiar with the matter said. Chinese state-owned banks including Industrial & Commercial Bank of China Ltd., Bank of China Ltd. and Bank of Communications Co. have scaled back their dealings with France’s Société Générale SA, BNP [...] From GoldCore Risk Of Bank Runs And Forcible FX Conversion Of Savings Deepens Gold’s London AM fix this morning was USD 1,573.75, EUR 1,254.48, and GBP 1,003.67 per ounce. Yesterday’s AM fix was USD 1,579.00, EUR 1,255.67, and GBP 1,006.63 per ounce. Silver is trading at $28.36/oz, €22.71/oz and £18.16/oz. Platinum is trading at $1,440.75/oz, palladium at $603.60/oz and rhodium at $1,275/oz. The New York Exchange was closed yesterday because of a national holiday. Gold has [...] Bank loans dove 33% April and the May figures may be worse, with only ¥34B ($5.4B) advanced through May 20 (¥682B was loaned in April). The news seems to have hit stocks and the aussie dollar, off 40 pips in a few minutes. From Bloomberg: China’s biggest banks may fall short of loan targets for the first time in at least seven years as an economic slowdown crimps demand for credit, three [...] After spending time combing through the financial reports of China’s biggest publicly traded, state- owned banks, I now understand what Jim Chanos, the famous short- seller, means when he keeps saying they are “built on quicksand.” He’s definitely on to something. Start with Industrial & Commercial Bank of China Ltd., the world’s most valuable bank, at least on paper, with a $238 billion market capitalization. Much of its capital consists of the remnants of bad [...] AFP: The United States on Wednesday opened its banking market to ICBC, China’s biggest bank, for the first time clearing a takeover of a US bank by a Chinese state-controlled company. Just days after high-level US-China economic talks in Beijing, the Federal Reserve approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia. The transaction will make [...] By Michael Kitchen LOS ANGELES (MarketWatch) — Chinese Premier Wen Jiabao criticized large state-controlled banks’ dominance of the country’s financial sector, according to remarks to a government radio station Tuesday. Wen said the top lenders were making profits “too easily” and enjoyed a “monopoly” that must be dismantled, according to reports of Wen’s comments to China National Radio. Wen is slated to leave office next year, with his successor expected [...] Beijing: China may be sitting on world’s highest foreign exchange reserves of about USD 3.20 trillion but it is also burdened with USD 2.78 trillion government debt causing great deal of concern among policy makers. China’s government debt amounts to about 17.5 trillion yuan (USD 2.78 trillion) about 43 per cent of the country’s gross domestic product (GDP), Yang Kaisheng, president of the Industrial and Commercial Bank of China, said Tuesday. It [...] BY DAN COLLINS When 1.3 Billion people start investing in something…you might want to pay attention. Chinese investment in silver has exploded since last year, with the trading volume going exponential. The China Daily reported today that the trading volume of silver forwards on the Shanghai Gold Exchange (SGE), China’s only exchange for the precious metal, surged 751 percent year-on-year in 2010. Meanwhile, the volume in September of this year was more than six times that [...] From FT: The Chinese government will boost its stakes in the country’s largest banks, as it attempts to shore up slumping financial stocks and to restore investor confidence. Central Huijin, the domestic arm of China’s sovereign wealth fund, will purchase shares in Agricultural Bank of China, Bank of China, China Construction Bank and Industrial and Commercial Bank of China, the official Xinhua news agency announced on Monday. Xinhua [...] From GoldCore Surging Gold Demand a “Global Phenomenon†– Chinese Demand for Silver “Voracious†Israeli comments led to dollar weakness and gold, silver and oil rallying yesterday. The Israeli government described the Iranian warships move into the Suez canal as a “provocation†and hinted at a possible response. Gold in USD – 10 Day (Tick) An example, if one was needed, about how precarious the geopolitical situation [...] From WSJ: China’s biggest bank signed an agreement that would make it the first Beijing-controlled financial institution to acquire retail bank branches in the U.S., though regulators could still block the deal. Under the deal, Industrial & Commercial Bank of China Ltd., by some measures the world’s largest bank, agreed to acquire a majority stake in Bank of East Asia Ltd.’s U.S. subsidiary. The price tag wasn’t disclosed. People familiar [...] [CHINESE] BANKS HALT CREDIT FOR PROPERTY FIRMS CHINA’S four biggest banks have stopped extending new credit to developers for the rest of the year, while the total credit available to property firms will be cut by 20 percent next year.The Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China used up their credit quotas for developers this year, China [...] bloomberg: China’s four biggest state banks will not issue any new loans to property developers for the remainder of the year, the state-run China Real Estate Business reported, citing unidentified executives at the banks. Industrial & Commercial Bank of China Ltd., China Construction Bank Corp, Bank of China Ltd. and Agricultural Bank of China Ltd., had met their allotted loan targets for the year, according to a copy of a report e-mailed [...] World’s biggest growth engine is about to collapse. China real estate bubble bursting: China’s stocks fell, sending the benchmark index to the lowest in seven months, on concern ordering banks to set aside more reserves won’t be enough to avert asset bubbles in the world’s third-largest economy. Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp., the nation’s top two listed lenders, retreated at least 1 percent as Deutsche Bank [...] |
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