China’s benchmark lending rates were kept unchanged, official data showed on Monday, in line with market expectations after key policy rates were held steady amid signs of economic recovery, the Wall Street Journal reported. The one-year loan prime rate was kept at 3.45%, while the five-year rate was left at 3.95%, said the People’s Bank of China. The hold on LPR was widely expected after the PBOC left its medium-term lending facility rate unchanged last week. The MLF rate is used as a guide for LPR, which is set by 20 major banks in China.
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With Imperial Pacific International (CNMI) LLC’s filing of chapter 11 bankruptcy petition in federal court on Friday, it stops Commonwealth Casino Commission (CCC) executive director Andrew Yeom and IPI from completing their proposed settlement, the Saipan Tribune reported. CCC board chair Edward C. DeLeon Guerrero has been acting on behalf of Yeom in the settlement discussion with IPI throughout last week because Yeom’s temporary contract as executive director expired last April 13.
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The U.S. and Chinese governments should take action to lower future borrowing, as a surge in their debts threatens to have “profound” effects on the global economy and the interest rates paid by other countries, the International Monetary Fund said on Wednesday, the Wall Street Journal reported. In its twice-yearly report on government borrowing, the Fund said many rich countries have adopted measures that will lead to a reduction in their debts relative to the size of their economies, although not to the levels seen before the Covid-19 pandemic.
People across China are being weighed down by their debts and a system that penalizes them for not paying the money back. Beijing is cracking down on delinquent debtors by seizing their salaries or restricting them from getting government jobs, as well as curbing their access to high-speed trains and air travel. Many are forbidden from buying expensive insurance policies and told they aren’t allowed to go on vacation or stay in nice hotels. Authorities can detain them if they don’t comply, the Wall Street Journal reported.
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Fitch Ratings has downgraded the outlook for six Chinese state-owned banks amid concerns about the government’s ability to support the sector in the event of stress. The move comes after the rating agency cut its outlook for China’s sovereign credit rating last week, the Wall Street Journal reported.
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China's economy grew faster than expected in the first quarter, data showed on Tuesday, offering some relief to officials as they try to shore up growth in the face of protracted weakness in the property sector and mounting local government debt, Reuters. However, several March indicators released alongside the gross domestic product data - including property investment, retail sales and industrial output - showed that demand at home remains frail, weighing on overall momentum.
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China’s central bank kept key policy rates steady and drained liquidity from the banking sector as economic data shows fresh signs of weakness, the Wall Street Journal reported. The People’s Bank of China on Monday held the interest rate on its one-year medium-term lending facility at 2.5% while injecting 100 billion yuan ($13.82 billion) funds via the instrument, according to a statement on its website. With CNY170 billion worth of MLF loans due on Wednesday, the PBOC has drained a net CNY70 billion liquidity from the financial system.
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State-backed property developer China Vanke said it is facing short-term liquidity pressure and operational difficulties, but added that it has prepared "a basket of plans" to stabilise its business and cut debt, Reuters reported. Vanke's Hong Kong-listed shares closed down 0.8% on Monday after hitting a record intraday low, while its Shenzhen-listed shares edged up 0.6%, stabilising after nine consecutive sessions of decline.
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China's securities regulator issued draft rules on Friday to strengthen the supervision of company listings, delistings and computer-driven programme trading, in a move to improve the stock market and protect investors' interests, Reuters reported. The China Securities Regulatory Commission (CSRC) will raise the bar for initial public offerings (IPOs), force unqualified companies to delist, and strengthen the oversight of high-frequency trading, according to draft rules put out for public opinion.
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Shimao Group shares fell sharply after a Chinese state-run bank, in a rare case, filed a liquidation petition against the heavily indebted developer in Hong Kong, adding uncertainty to a proposed restructuring of billions of dollars of offshore debt, the Wall Street Journal reported. Shares were 14% lower at 39 Hong Kong cents after Shimao said Monday that Construction Bank (Asia) Corp. filed a winding-up petition with a Hong Kong court on April 5 related to a financial obligation of around HK$1.58 billion (US$201.8 million).
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