Coronavirus impact: Millions of Chinese firms face collapse if banks don’t act fast
4 years, 10 months ago

Coronavirus impact: Millions of Chinese firms face collapse if banks don’t act fast

Live Mint  

Brigita, a director at one of China’s largest car dealers, is running out of options. While China’s government has cut interest rates, ordered banks to boost lending and loosened criteria for companies to restart operations, many of the nation’s millions of private businesses say they’ve been unable to access the funding they need to meet upcoming deadlines for debt and salary payments. Industrial & Commercial Bank of China Ltd., the nation’s largest lender, has offered relief to 14,000 small businesses, or about 5% of its small business clients. To put that into perspective, China’s small businesses typically face interest payments on about ¥36.9 trillion of loans typically every quarter. A debt banker at one of China’s largest brokerages said his firm opened a fast lane to ease debt sales by businesses involved in the containment effort, with borrowers required to prove they will use at least 10% of the proceeds to fight the disease.

China Month Chinese Virus Firm Businesses Banks Small Brigita  debt  months  virus  firms  chinas  chinese  loans  impact  coronavirus  millions  small  firm  face  fast  businesses  collapse  dont  month  banks

History of this topic

China's factory output disappoints, dashing hopes for speedy recovery
4 months, 3 weeks ago

China's factory output disappoints, dashing hopes for speedy recovery

The Hindu  

China's factory output growth slowed and missed expectations in July, adding to a series of indicators that show the world's second-largest economy is struggling to kick into a higher gear, even with recent government support. "The data shows that the economy has gotten off to a weak start in the second half of the year, and it is expected that …

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program
5 months, 2 weeks ago

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program

Associated Press  

BANGKOK — China ratcheted up its effort to reinvigorate its slowing economy Thursday by unexpectedly cutting a key policy rate and also doubling subsidies for electric vehicles bought to replace older cars. The People’s Bank of China said it cut its lending rate for one-year medium term policy loans by 20 basis points to 2.3%. Major state-run banks cut deposit …

China ramps up financial support for SMEs to spur economic vitality
6 months, 1 week ago

China ramps up financial support for SMEs to spur economic vitality

China Daily  

A robotic arm works on a photovoltaic module production line of a new energy company in Ordos, Inner Mongolia autonomous region, on March 21, 2024. BEIJING -- China has significantly enhanced financial support measures aimed at small and medium-sized enterprises to boost economic vitality. In April, China set up a re-lending program worth 500 billion yuan to promote technological innovation …

China's commercial banks resilient against risks: regulator
6 months, 4 weeks ago

China's commercial banks resilient against risks: regulator

China Daily  

A cashier at a bank in Taiyuan, Shanxi province counts renminbi notes. BEIJING - The balance of loan loss provisions of China's commercial banks came in at 6.9 trillion yuan at the end of the first quarter of this year, data from the country's financial regulator showed. The figure increased by 269.8 billion yuan from the end of the previous …

China’s big banks cut deposit rates as growth plateaus
1 year ago

China’s big banks cut deposit rates as growth plateaus

Live Mint  

China’s biggest banks are lowering the deposit rates offered to savers, a move that could pave the way for the central bank to make interest-rate cuts to spur economic growth. “Lower deposit rates should help alleviate pressures on banks’ net interest margins and lay the groundwork for the PBOC to cut its policy lending rates in January, which have been …

The $2 trillion interest bill that’s hitting governments
1 year, 1 month ago

The $2 trillion interest bill that’s hitting governments

Live Mint  

The world spent the past decade-plus taking advantage of rock-bottom interest rates to binge on debt. Governments are expected to spend a net $2 trillion paying interest on their debt this year as higher interest rates make borrowing more expensive, up more than 10% from 2022, according to an analysis of International Monetary Fund data by research consulting firm Teal …

World Bank president David Malpass raises concerns over China's loans to developing nations
1 year, 9 months ago

World Bank president David Malpass raises concerns over China's loans to developing nations

Op India  

In a recent development, the President of the World Bank, David Malpass, has expressed concerns over China’s loans to developing countries and the possibility of a “Chinese debt trap” that Beijing is notorious for in asserting its dominance over countries seeking funds to shore up their respective economies. This phenomenon refers to China’s practice of offering large loans to developing …

China's industrial profits slump in Jan.-Feb. as COVID pain lingers
1 year, 9 months ago

China's industrial profits slump in Jan.-Feb. as COVID pain lingers

The Hindu  

Profits at industrial firms in China declined 22.9% in the first two months of 2023 from the year before, official data showed on Monday, as the factory sector struggles to claw its way out of the slump caused by COVID-related disruptions. The contraction followed a 4% fall in industrial profits for the whole of 2022, data from the National Bureau …

Banking crisis: China has its own version of problems
1 year, 9 months ago

Banking crisis: China has its own version of problems

Live Mint  

For all the talk of China’s post-Covid economic revival and sweeping changes at the top, Beijing’s biggest problems are its small and medium companies. That’s mirrored at China’s smaller, regional lenders, where assets are growing almost as fast as at their larger, state-owned peers that tend to serve big enterprises. The weakest of small corporates — starved for funding and …

Chinese Loan Apps Exploited Covid Crisis, Weak Regulatory Framework to Cheat Millions of Indians, Says ED
1 year, 10 months ago

Chinese Loan Apps Exploited Covid Crisis, Weak Regulatory Framework to Cheat Millions of Indians, Says ED

News 18  

Chinese loan apps took advantage of the Covid crisis in India and cheated millions of gullible people who were in a financial mess. The central investigating agency has highlighted how the Chinese apps took advantage of a weak regulatory framework in India to make mind-boggling profits. Indian investigating agencies are keeping an eye on loan apps like Money View, Krazy …

China’s economic growth falls to 3%, gradually reviving
1 year, 11 months ago

China’s economic growth falls to 3%, gradually reviving

Associated Press  

BEIJING — China’s economic growth fell to its second-lowest level in at least four decades last year under pressure from anti-virus controls and a real estate slump, but activity is reviving after restrictions that kept millions of people at home and sparked protests were lifted. Economic growth sank to 2.9% over a year earlier in the three months ending in …

China economy recovering but hampered by virus outbreaks
1 year, 11 months ago

China economy recovering but hampered by virus outbreaks

Associated Press  

BEIJING — Wang Jian is anxious to get back to work teaching basketball to children now that China has lifted anti-COVID-19 restrictions. “If parents worry about possible reinfection, they simply won’t send their children for training.” The abrupt decision by President Xi Jinping’s government to end controls that shut down factories and kept millions of people at home will move …

In our 'profound interest' that China reins in latest surge in coronavirus infections: Antony Blinken
2 years ago

In our 'profound interest' that China reins in latest surge in coronavirus infections: Antony Blinken

The Hindu  

It is in America's "profound interest" that China reins in the recent surge in coronavirus infections, U.S. Secretary of State Antony Blinken has said, asserting that there are major implications if the world's second-largest economy remained shut down due to the virus. When asked about the latest surge in COVID-19 cases in China, Mr. Blinken said the U.S. wants to …

China eases some controls but gives no sign when ‘zero COVID’ might end
2 years, 1 month ago

China eases some controls but gives no sign when ‘zero COVID’ might end

LA Times  

Residents in Beijing line up for coronavirus testing next to a wall slogan extolling the political philosophy of Chinese President Xi Jinping. … Restrictions could still tighten dynamically in lower-tier cities should hospitalizations surge.” The changes follow protests demanding an end to “zero COVID” but are in line with earlier Communist Party promises to reduce disruption by easing quarantine and …

China consumer, factory activity down as virus controls rise
2 years, 1 month ago

China consumer, factory activity down as virus controls rise

Associated Press  

BEIJING — Chinese consumer spending contracted in October and factory activity weakened as anti-virus controls following a rise in infections weighed on the economy. The performance was even weaker than expected by forecasters who said activity would cool as Chinese anti-virus controls and interest rate hikes by the U.S. Federal Reserve and other central banks weighed on global activity. Chinese …

China cuts interest rate to shore up sagging economy
2 years, 4 months ago

China cuts interest rate to shore up sagging economy

Associated Press  

BEIJING — China’s central bank trimmed a key interest rate Monday to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is trying to extend his hold on power. The ruling party has effectively acknowledged it cannot hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. “More efforts …

One in 12 businesses default on Covid loans, figures show
2 years, 5 months ago

One in 12 businesses default on Covid loans, figures show

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Covid loans" data-source=""> During the early days of Covid-19, …

China’s economic distress deepens as lockdowns drag on
2 years, 7 months ago

China’s economic distress deepens as lockdowns drag on

Live Mint  

HONG KONG : China’s economy descended deeper into a Covid-induced doldrums last month, raising questions about whether Beijing’s planned stimulus measures can prevent a prolonged downturn. Consumer spending and factory output tumbled in April, while growth in infrastructure investment—which Beijing has been counting on to prop up growth this year—slowed sharply, China’s National Bureau of Statistics reported on Monday. The …

China fights economic slump, sticks to costly ‘zero COVID’
2 years, 7 months ago

China fights economic slump, sticks to costly ‘zero COVID’

Associated Press  

BEIJING — China’s leaders are struggling to reverse an economic slump without giving up anti-virus tactics that shut down Shanghai and other cities, adding to challenges for President Xi Jinping as he tries to extend his time in power. However, he said, “achieving ‘zero COVID’ is quite challenging, because omicron is more infectious.” A foreign ministry spokesman on Wednesday defended …

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market
2 years, 8 months ago

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market

Bloomberg  

Yields Top 22% as Covid-Zero Policy Stings China Dollar Bonds China Credit Tracker Share this article Fresh challenges are confronting Chinese borrowers in global debt markets after authorities doubled down on the nation’s Covid Zero policy. The focus remains on China’s offshore junk note market—dominated by property developers—after stress levels remained at their most elevated level in April, Bloomberg’s credit …

COVID-19 | Shanghai promises to improve food supplies, trade
2 years, 8 months ago

COVID-19 | Shanghai promises to improve food supplies, trade

The Hindu  

Officials in Shanghai promised Friday to ease anti-virus controls on truck drivers that are hampering food supplies and trade as they try to revive the local economy while millions of people are still confined to their homes. A deputy mayor, Zhang Wei, promised “every effort” to resolve problems that prompted complaints about lack of access to food and fears that …

China signals caution on inflation despite COVID, Ukraine woes
2 years, 8 months ago

China signals caution on inflation despite COVID, Ukraine woes

Al Jazeera  

The People’s Bank of China keeps one-year loan prime rate at 3.7 percent and the five-year rate at 4.6 percent. China held key interest rates for corporate and household loans steady on Wednesday, a surprise move that signals Beijing remains cautious about policy easing even as COVID-19 and the Ukraine war weigh on growth. The People’s Bank of China kept …

China steers economy through challenges
2 years, 8 months ago

China steers economy through challenges

China Daily  

Editor's note: The Chinese economy faces severe challenges because the wave of the COVID-19 infections could lower GDP growth. MA XUEJING/CHINA DAILY Some foreign media say China's economic growth target of about 5.5 percent is too high, and its economic prospects are unattainable. The"2022 White Paper on the Business Environment in China" and the "2022 Special Report on the State …

Hohhot city acts to help novel coronavirus-hit enterprises
2 years, 8 months ago

Hohhot city acts to help novel coronavirus-hit enterprises

China Daily  

Hohhot – capital of North China's Inner Mongolia autonomous region – has been taking financial steps to help small and medium-sized enterprises in the city that have been hit by the COVID-19 epidemic, according to local media reports. These can get bank loans and obtain preferential interest rates through risk capital pools provided by the municipal bureau of industry and …

China strengthens lending support for private enterprises
3 years, 1 month ago

China strengthens lending support for private enterprises

China Daily  

BEIJING -- China has increased lending support for the private sector, with new loans to private enterprises reaching 5 trillion yuan in the first 10 months of 2021, according to China's top banking and insurance regulator. Outstanding loans to private enterprises by banking financial institutions stood at 53.1 trillion yuan as of September this year, 15 trillion yuan more than …

Explained: Why China's property crash isn't a Lehman Brothers moment
3 years, 2 months ago

Explained: Why China's property crash isn't a Lehman Brothers moment

The Hindu  

Any story you tell about China, with its population of 1.4 billion and an economy that has more than doubled over the last decade, will always involve big numbers ― scary numbers. New home sales plummet by a third With property being a key driver of economic growth ― contributing about 29 per cent to China's gross domestic product ― …

World Bank cuts Asia growth outlook, calls for virus action
3 years, 3 months ago

World Bank cuts Asia growth outlook, calls for virus action

Associated Press  

BEIJING — The World Bank on Tuesday cut its economic growth forecast for developing countries in East Asia due to the impact of the coronavirus’s delta variant and called on governments to help the poor and small businesses avoid long-term damage. It said business activity in Vietnam, Thailand, the Philippines and other economies was improving but now is “showing signs …

Covid loan bank went through ‘gigantic shift’ as it funnelled £88bn to UK companies
3 years, 3 months ago

Covid loan bank went through ‘gigantic shift’ as it funnelled £88bn to UK companies

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The boss of the Government-owned …

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming
3 years, 3 months ago

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming

CNN  

Hong Kong CNN Business — China’s dramatic steps to contain the coronavirus this summer have taken a toll on consumer confidence inthe country and are fueling concerns aboutthe strengthof the world’s second largest economy. Industrial production rose 5.3% in August from a year earlier, also slower than July and the weakest growth generated by China’s factoriesin a year. “The headwinds …

China’s economy is being rattled by the Delta variant and supply chain woes
3 years, 4 months ago

China’s economy is being rattled by the Delta variant and supply chain woes

CNN  

Hong Kong CNN Business — China’s economy stalled this month as the country tried to stamp out a surge in coronavirus cases and contended with the ongoing shipping crisis. China’s economy initially coped with the pandemic much better than many of its peers, recording growth last year as others shrank. “The latest surveys suggest that China’s economy contracted last month …

ICBC's nonperforming loan ratio declines
3 years, 4 months ago

ICBC's nonperforming loan ratio declines

China Daily  

Industrial and Commercial Bank of China Ltd has effectively contained a rebound of the nonperforming loan ratio since the outbreak of the COVID-19 pandemic last year, senior executives said on Friday. "As the domestic economy continuously recovered in the first half, we saw a steady slowdown in the growth of our bank's corporate loans whose principal and interest repayments were …

Chinese loans to Latin America plunge as virus strains ties
3 years, 10 months ago

Chinese loans to Latin America plunge as virus strains ties

Associated Press  

MIAMI — It seemed like a match made in finance heaven. For the first time in 15 years, China’s two biggest policy banks — the China Development Bank and the Export-Import Bank of China — made no new loans to the region in 2020, capping a multi-year slump driven by Latin America’s worsening economic slide. The China Development Bank and …

China-backed AIIB to help vaccine rollout, expects steady lending in 2021
3 years, 11 months ago

China-backed AIIB to help vaccine rollout, expects steady lending in 2021

Business Standard  

The logo of Asian Infrastructure Investment Bank is seen at its headquarter building in Beijing BEIJING - The Beijing-backed Asian Infrastructure Investment Bank will follow other development banks in helping to finance the rollout of COVID-19 vaccines, its president said on Wednesday, while its total lending in 2021 will be similar to last year's. "The World Bank and ADB have …

Are UK businesses facing catastrophe due to vast coronavirus debt burdens?
4 years ago

Are UK businesses facing catastrophe due to vast coronavirus debt burdens?

The Independent  

The coronavirus pandemic has delivered the largest economic shock to the UK economy in three centuries. Recommended How corporate Britain got screwed by Brexit “Without it, we’d be in a very different situation – and a very grave one at that.” Under various state-backed schemes rolled out by the Treasury since May, 1.5 million firms have tapped some £65bn of …

Economy in Rebound, China Borrows at Negative Interest Rates for the First Time
4 years, 1 month ago

Economy in Rebound, China Borrows at Negative Interest Rates for the First Time

News 18  

China is cashing in on fears that the West’s faltering economic recovery will keep interest rates near record lows for a long time. “It shows investors are still underexposed to China and there definitely is a scarcity value perceived in these bonds,” said Deutsche Bank’s head of China onshore debt capital markets, Sam Fischer. European investors seized the opportunity to …

After halting Ant’s big IPO, China reportedly wants to go further
4 years, 2 months ago

After halting Ant’s big IPO, China reportedly wants to go further

Al Jazeera  

The shock suspension of Ant Group Co.’s $35 billion initial public offering is just the beginning of a renewed campaign by China to rein in the fintech empire controlled by Jack Ma. Authorities are now setting their sights on Ant’s biggest source of revenue: its credit platforms that funnel loans from banks and other financial institutions to millions of consumers …

Financing for small firms gets priority
4 years, 5 months ago

Financing for small firms gets priority

China Daily  

The People's Bank of China, the central bank, has stepped up countercyclical adjustments and launched multiple, innovative monetary instruments with direct access to small businesses to stabilize enterprises and secure employment, according to Yi Gang, the central bank governor. The outstanding balance of loans to micro and small enterprises with a total credit line of up to 10 million yuan …

Financial support to focus on 3 sectors
4 years, 5 months ago

Financial support to focus on 3 sectors

China Daily  

An employee works on a production line of Sinotruk Fujian Haixi Truck Co in Zhangzhou, Fujian province, on July 7. ZHANG BIN/CHINA NEWS SERVICE China will be stepping up financial support for the manufacturing industry, small businesses and international trade companies to promote economic recovery and high-quality development, senior bank executives said. The interest rate of new loans issued by …

Head of the line: Big companies got coronavirus loans first
4 years, 5 months ago

Head of the line: Big companies got coronavirus loans first

Associated Press  

NEW YORK — Ever since the U.S. government launched its emergency lending program for small businesses on April 3, there have been complaints that bigger companies had their loans approved and disbursed more quickly. An Associated Press analysis of Small Business Administration’s $659 billion Paycheck Protection Program shows that nearly a third of the loans approved in the program’s first …

Policies should focus on upgrading SMEs, not just emergency relief
4 years, 5 months ago

Policies should focus on upgrading SMEs, not just emergency relief

China Daily  

Employees work on the production line of an electronic products company in Shaoyang, Hunan province, on June 17. The government policies that made this possible are partly a response to the economic disruptions caused by the COVID-19 pandemic, but they predate the coronavirus and are designed to support and upgrade the nation's SMEs. In many ways, the measures to upgrade …

Policies should focus on upgrading SMEs, not just emergency relief
4 years, 5 months ago

Policies should focus on upgrading SMEs, not just emergency relief

China Daily  

Employees work on the production line of an electronic products company in Shaoyang, Hunan province, on June 17. The government policies that made this possible are partly a response to the economic disruptions caused by the COVID-19 pandemic, but they predate the coronavirus and are designed to support and upgrade the nation's SMEs. In many ways, the measures to upgrade …

More funding sources beckon smaller firms
4 years, 6 months ago

More funding sources beckon smaller firms

China Daily  

China will strive to provide more funding sources for small businesses and look to lower the financing costs via financial bonds for micro and small enterprises. During the first five months of this year, 23 commercial banks issued 275.28 billion yuan of financial bonds for micro and small enterprises. Agricultural Bank of China Ltd and Bank of China Ltd, two …

China's banking, insurance regulator vows efforts to help SMEs overcome coronavirus troubles
4 years, 7 months ago

China's banking, insurance regulator vows efforts to help SMEs overcome coronavirus troubles

China Daily  

China's banking and insurance regulator on June 4 pledged continued efforts to help micro, small and medium-sized enterprises overcome coronavirus-related challenges and take the country's reform and opening-up in the financial sector to a deeper level. The spokesperson also dismissed concerns about the prosperity and stability of the Hong Kong Special Administrative Region and its status as an international financial …

Economic hit from coronavirus will be limited, NDRC head says
4 years, 7 months ago

Economic hit from coronavirus will be limited, NDRC head says

China Daily  

He Lifeng, head of the National Development and Reform Commission is interviewed via video link after the opening of the third session of the 13th National People's Congress at the Great Hall of the People in Beijing, capital of China, May 22, 2020. China has the ability to cope with the various risks and challenges amid the COVID-19 outbreak, and …

3 takeaways from AP review of small-business loan program
4 years, 8 months ago

3 takeaways from AP review of small-business loan program

Associated Press  

Small businesses have, like much of the U.S. economy, been walloped by the coronavirus. Key takeaways from an AP review: A RANGE OF RECIPIENTS About 1.6 million businesses received $349 billion worth of loans before the initial fund ran out last week. By combing through thousands of regulatory filings, the AP found that at least 94 publicly traded companies or …

Coronavirus: Chinese economy shrinks for the first time since 1976
4 years, 8 months ago

Coronavirus: Chinese economy shrinks for the first time since 1976

Op India  

The scourge of Wuhan Coronavirus has brought the remarkable growth-run of the Chinese economy to an end as China reported the contraction of its economy for the first time since the end of the Cultural Revolution in 1976. Ravaged by the coronavirus outbreak, China’s economy shrank by 6.8 per cent in the first three months of 2020. As the world’s …

China's economy shrank 6.8% in January-March, posts first decline on record as virus shuts down economy
4 years, 8 months ago

China's economy shrank 6.8% in January-March, posts first decline on record as virus shuts down economy

Firstpost  

The historic slump in the world’s second-largest economy comes after efforts to contain the coronavirus, which first emerged in China late last year, shut down factories, transport and shopping malls. Beijing: China’s economy shrank 6.8 percent in January-March from a year earlier, official data showed on Friday, the first such decline since at least 1992 when quarterly gross domestic product …

Coronavirus: Asian Development Bank triples rescue package to $20 billion
4 years, 8 months ago

Coronavirus: Asian Development Bank triples rescue package to $20 billion

Live Mint  

The Asian Development Bank is tripling the amount of quick-disbursing loans available to developing member countries in Asia to $20 billion to help them battle the economic and health effects of the coronavirus pandemic, its president said. President Masatsugu Asakawa said the ADB was adding $13.5 billion to the initial $6.5 billion package it announced last month because the economic …

The Coronavirus Small Business Loan Program: What You Need To Know
4 years, 9 months ago

The Coronavirus Small Business Loan Program: What You Need To Know

NPR  

The Coronavirus Small Business Loan Program: What You Need To Know Enlarge this image toggle caption Suzanne Kreiter/Boston Globe via Getty Images Suzanne Kreiter/Boston Globe via Getty Images Starting today, small businesses can apply for the nearly $350 billion in loans available through the economic rescue plan from Congress. Indeed, on Friday, Bank of America's website said the program was …

World Bank: Coronavirus pandemic could push 11 million people in Asia into poverty
4 years, 9 months ago

World Bank: Coronavirus pandemic could push 11 million people in Asia into poverty

CNN  

Hong Kong CNN Business — The economic fallout from the coronavirus pandemic could drive an additional 11 million people into poverty in East Asia and the Pacific unless “urgent action” is taken, the World Bank warned in a report released Monday. “Significant economic pain seems unavoidable in all countries,” said the report, warning that the entire Asia Pacific region should …

Discover Related