As China’s real estate prices continue to rise despite the central government’s repeated housing curbs, experts have suggested the cure is to be found in market-oriented measures. China has been fine-tuning its property regulations since 2003, but average housing prices nationwide have more than tripled over the last decade, with some areas seeing prices grow by 10 times the original price. The government’s latest move to rein in the price [...]

IN an underground mall just a stone’s throw from the Chinese mainland’s border with Macau, a row of 30 small shops with identical gold plaques do a brisk, though shadowy trade with mainland visitors, many of them bound for the gambling hub. “Good rates. Better than the banks,” shout salespeople jostling to usher clients into shops where thick wads of notes change hands. Licensed as liquor and dry goods stores [...]

LGFV loans stood at 9.3 trillion yuan at the end of 2012, 1.5 times the fiscal revenue reported by local governments for the year of 2012 Bank lending to local government financing vehicles (LGFVs) coming due in the following two or three years is expected to reach 3.49 trillion yuan, posing dire challenges to risk control, said Chairman of China’s top regulator. Shang Fulin, chairman of China Banking Regulatory Commission [...]

China’s trade surplus is about one tenth of the officially reported $61 billion so far this year, after accounting for fake transactions used to channel the so-called “hot money” into mainland China’s trade surplus is about one tenth of the officially reported $61 billion so far this year, after accounting for fake transactions used to channel the so-called “hot money” into mainland, says Bank of America Corp., as quoted by [...]

Report from annual conference argues capital account convertibility should be included in the next round of changes The country’s financial industry has been relatively well-aligned with international practices compared with other service sectors, but it still needs further opening up, experts said at the China Finance 40 Forum on May 19. The annual forum comprises of 40 Chinese financial elites around age 40. Discussions this year focused on capital account [...]

Japan recently won approval to buy up to 65 billion yuan ($10.58 billion) worth of Chinese government bonds, effectively marking the first sale of yuan-denominated government bonds to a developed nation. Of course, now there is the risk that this deal will open the flood gates on sales of Chinese government debt overseas. If the world follows Japan’s lead and starts devouring yuan-denominated assets, this will push up demand for [...]

The Export-Import Bank of China confirmed on Monday that it will fund Greek ship owners to book vessels in Chinese shipyards. The bank signed agreements with three Greek shipping companies, Diana Shipping, Angelicoussis and Dynagas, to provide them with loans to order “high-end vessels” in Chinese yards, according to an emailed statement from the bank. The bank plans to enhance cooperation with overseas ship owners and attract more orders for [...]

China has emerged as the most financially secure country in an index jointly launched by PICC Property and Casualty Co Ltd, the largest non-life insurance company in the Chinese mainland, and Genworth Financial Inc, a Fortune 500 insurance holding company. The report surveyed 13,000 households in 14 European countries, and five Latin American countries and China. China scored 78 out of 100, the highest score of any country and the [...]

China’s growing level of local government and corporate debt has become a major issue for the nation’s financial system, and requires the authorities to work on solutions to reduce the risk of a hard landing, according to experts. The banking system can only handle possible external impacts if debt restructuring is immediately pushed forward, said Liu Yuhui, an economist with the Chinese Academy of Social Sciences. China lacks institutions and [...]

Reform is key, says Liu Jipeng, new chairman of China Securities Regulatory Commission The stock market should be a place to realize the Chinese dream and accumulate wealth by sharing in the nation’s development, said economist Liu Jipeng. A long-time champion for capital market reform, Liu said he is encouraged by the recent promise by Xiao Gang, the newly appointed chairman of the China Securities Regulatory Commission, that the stock [...]