China banks unlikely to face systemic risk: Moody's
Chinese banks would see their bad loan ratios creep up in the next few years but it was unlikely that they would face a systemic crisis similar to that suffered by their Wall Street counterparts two years ago. "Lending to the real estate sector and local government financing vehicles in 2009 are sources of future growth in non-performing loans," said Yvonne Zhang, China banking analyst of Moody's Investors Service. Potential losses from the two sectors could hit Chinese bank profitability, but the likelihood of a downgrade on their financial ratings was slim, partly because of the country's robust economic growth, said Zhang, who covers a portfolio of Chinese banks including top lenders Industrial and Commercial Bank of China and China Construction Bank for Moody's from Beijing. "As long as the Chinese economy maintains its fast growth, we think the performance of major Chinese banks will not be too bad," Zhang told clients at a briefing in China's financial hub on Tuesday. "One positive is the quick policy response from the government, which could help mitigate systemic risk." The China Banking Regulatory Commission this month said "unwise lending" to local government investment units was among key risks faced by Chinese banks. Chinese banks may have as much as 7 trillion yuan ($1.03 trillion) in loans to local government financing vehicles on their books, latest official data showed. A correction in China's property sector after the government introduced a range of policies to curb surging real estate prices could also hit banks in the next few years as heavily-leveraged home buyers may default on their loans. All major Chinese banks have announced massive fundraising plans to replenish their capital bases after a lending spree last year to support the country's 4 trillion yuan stimulus programme Steelmaker to join hunt for overseas resources with Australian ore deal BEIJING -Hebei Iron and Steel Group is in discussions with Atlas Iron Ltd for a stake in the Ridley magnetite project in Western Australia, sources familiar with the matter said on Monday. "Hebei Steel does not have any overseas mining resources and is looking at the Ridley project in Australia to bolster its iron ore supplies," said the source. The Ridley project is expected to yield 15 million tons of ore annually over the next 35 years. "The Chinese steel company had earlier been in talks with Australian iron ore miner Aurox Resources for a stake. But unfortunately a deal did not materialize. Hebei is now showing interest in the Ridley project as Atlas and Aurox are being merged," the source said. Atlas announced in March that it was buying Aurox to expand its port capacity and iron ore resources in Western Australia. The expected merger will create a company with a combined annual output of 26 million tons of iron ore by 2014. Atlas, which plans to boost output fivefold this year, is also in talks with three groups from Asia and the Middle East for the Ridley stake, Bloomberg reported on June 24. "There's a group we're talking to from Japan," Chief Executive Officer David Flanagan told reporters at Atlas Iron's mining site near the Pilbara district's Port Hedland in Western Australia. "There's a consortium from Saudi Arabia and India and some groups from China." Atlas would prefer to divest about 75 percent of the Ridley stake and may also consider selling the entire 100 percent for the right price, he said. About Author We are very professional supplier of selling Nike shoes such as Nike or more AirShox,AirMax,Air Jordan,Air Force 1 and so on, We offer grade A quality product only. Our products are authentic quality with original box.And all products displayed on our website are available and have stocks here. We offer very special prices to our customer (price depends on your quantity).Very fast and safety delivery by TNT, DHL OR EMS, we can delivery within 24 hours upon receiving your payment. It is very safe door to door service, never get problems with customs. If you have any questions, please feel free to contact us. We accept small orders! Thank you very much ! fail information, please kindly visit our website: www.footwearfile.com www.yannikeshoes.com www.pickfashion.com Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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