Financial Industry 08 (Aug 23 - Dec 26)

[winston]

6 Major CN Banks Incl. ICBC & CCB, Launch New Measures for Fee Reductions & Concessions

ICBC (01398.HK), ABC (01288.HK) , BANK OF CHINA (03988.HK) , CCB (00939.HK) , BANKCOMM (03328.HK) and PSBC (01658.HK) announced yesterday (30th) respectively that they will actively implement measures to benefit enterprises and the public, while continuing to implement existing policies for fee reductions and concessions.

These measures aim to further reduce the operating costs for the real economy and financial burdens on consumers.

The major banks have lowered their respective fee standards, including reducing the handling fees for bank acceptance of bills of exchange to a fixed rate of 0.05% of the face value.

They will also waive the printing fees for personal account statements; charge security authentication tool costs for corporate and individual customers at a price not exceeding the cost, and continue to provide credit card grace period services for cardholders, among other measures.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Chinese banks’ asset quality remains stable but interest margin pressures to continue : analysts

Chinese banks reported mildly higher profit growth in the year to date due to lower loan loss provisions but they are expected to face continued operational challenges

Some analysts expect the central bank to launch more easing measures to help reduce banks’ funding cost and pave the way for reduced margin pressures

by Yuke Xie

Source: SCMP

https://www.scmp.com/business/banking-f ... cd505f290f

[winston]

China cements party control over finance, clamping down on risk but making investors sweat

At a top-level financial conference, China’s leadership reasserted the need for greater control by the Communist Party, to mitigate systemic risk and keep institutions in line

Move signals commitment to security, but undermines rhetoric of opening-up and welcoming foreign investment

by Ji Siqi and Frank Chen

Source: SCMP

https://www.scmp.com/economy/china-econ ... n_business

[winston]

Making a Bet on Financial Stocks Right Now is Smart

by Lucas Downey

The CME FedWatch tool shows investors expect the first rate cut to come in May. That’s followed by the forecasts of another cut in July, one in September, and one more in December:

Falling interest rates is good news for the Financial sector:-
1. More deal flow
2. Yield curve steepening
3. Private equity (PE) resurgence
4. Mortgage underwriting

The obvious way to play this trend is to buy financial stocks with the Financial Select Sector ETF (XLF).

Source: TradeSmith

https://tradesoftheday.com/2023/11/08/m ... -is-smart/

[behappyalways]

Bond-market crash leaves big banks with $650 billion of unrealized losses as the ghost of SVB continues to haunt Wall Street
https://markets.businessinsider.com/new ... er-2023-11

[winston]

Sex, drugs, and booze is the least of the FDIC's

1) Banks already have accumulated $650 billion of losses from unrealized bond losses
2) More losses are coming from commercial real estate
3) The $221 TRILLION risk from derivatives is very difficult to calculate

Source: Sovereign Man

[winston]

China’s Collapsed Shadow Bank Zhongzhi Warns of $30 Billion Hole

“Severely insolvent” with a debt pile more than two times higher than assets.

In a further sign of trouble for the nation’s $3 trillion trust sector, Zhongzhi Enterprise Group Co. told investors on Wednesday that it has debts of about 420 billion yuan ($58.7 billion) to 460 billion yuan, compared with assets of 200 billion yuan.

Source: Bloomberg

https://finance.yahoo.com/news/china-tr ... 48988.html

[winston]

China’s lawmakers issue rare warning over banks’ asset quality due to inflated, inaccurate data

Standing Committee of the National People’s Congress warned some data does not ‘truly reflect the actual situation’ during a meeting last month

Preventing and resolving financial risks has been elevated as the ‘eternal theme’ of China’s financial work, with the system plagued by property and debt issues

by Ji Siqi

Source: SCMP

https://www.scmp.com/economy/china-econ ... 1952b3f461

[behappyalways]

Unrealized Losses At US Banks Exploded In Q3
https://www.zerohedge.com/markets/unrea ... xploded-q3

[winston]

by behappyalways:-

China's Battered Banks Are Poised For More Pain

The sector’s net interest margins slumped to a record low of 1.73% as of September, below the 1.8% threshold, seen as necessary to maintain reasonable profitability.

https://www.zerohedge.com/markets/china ... -more-pain