Latest news with #BankofCommunications
The Star
01-05-2025
- Business
- The Star
Schroders hit by client withdrawals from China
LONDON: British fund manager Schroders reported 7.4 billion pounds ($9.8 billion) of net outflows in the first quarter on Thursday, as customers withdrew cash from its joint venture funds in China. Schroders said its flows were impacted by 8.5 billion pounds cashed out from its joint ventures in the three months to end-March, primarily from money market funds in China, where it operates two ventures with local bank Bank of Communications. Analysts at JPMorgan called the first quarter performance "lacklustre", with its flows and the market performance of its funds falling short of the analysts' forecasts. Schroders shares fell more than 3% in early trading and were last down 1.2% at 0720 GMT. China has been at the centre of deteriorating global trade relations with the United States, although the quarterly figures pre-dated U.S. President Donald Trump's main barrage of tariffs on April 2. Reuters reported last month that Schroders cut about one-sixth of staff at its separate fully-owned China fund manager, the latest global asset manager to trim operations in the country as it seeks to cut costs under new CEO Richard Oldfield. Olfield unveiled a strategy update for the 221-year old firm in March aimed at rebooting its flagging performance, including by shedding 150 million pounds of costs and sharpening its focus on wealth management. Schroders also reported total assets under management of 758.4 billion pounds at the end of March, down nearly 3% from the end of 2024. The FTSE 100 firm said that excluding the joint venture withdrawals, it attracted 1.1 billion pounds of net inflows, driven by its wealth management arm and private markets business Schroders Capital. - Reuters
Mint
29-04-2025
- Business
- Mint
HSBC sees up to $1.6 billion in loss on China bank stake reduction
HONG KONG, - HSBC said on Tuesday that its stake in Bank of Communications will drop to about 16% from 19.03%, and it will book a loss of up to $1.6 billion as a result of the Chinese bank's fundraising by private placement of shares. Four of China's largest state-owned banks, including BOCOM, said in March they plan to raise a combined 520 billion yuan from investors, including the finance ministry, after Beijing pledged to help them support the economy. The fundraising announcement came after Chinese policymakers pledged to recapitalise major state banks to boost their ability to bolster the real economy. BOCOM at that time said it would sell shares to raise as much as 120 billion yuan. After the completion of the BOCOM capital raising, HSBC said it expects the bank's stake to reduce by around three percentage points to 16%, resulting in a pre-tax loss in the range of $1.2 billion to $1.6 billion. The potential loss will be recognised in the Asia-focused lender's income statement, subject to the timing of completion, foreign exchange changes and other factors, HSBC said in its quarterly profit report. HSBC said that the loss "would not be deductible for tax purposes" as its shareholding in BOCOM is being held for long-term investment purposes, and it will not have a material impact on capital ratios or dividend distribution capacity. In February last year, HSBC reported a shock $3 billion charge on its stake in BOCOM, the largest yet by an overseas lender, as bad loans mounted in the world's second-largest economy amid a protracted property sector crisis. On Tuesday, HSBC, which makes the bulk of its revenues and profits in Asia, reported a 25% fall in first-quarter profit and warned of heightened business uncertainty in the face of U.S. President Donald Trump's sweeping global tariffs. This article was generated from an automated news agency feed without modifications to text. First Published: 29 Apr 2025, 11:08 AM IST
Yahoo
31-03-2025
- Business
- Yahoo
China beefs up its biggest banks to boost the economy
Four of China's largest state-owned banks said on Sunday they plan to raise a combined 520 billion yuan ($71.60 billion) in private placements from investors, including the finance ministry, after Beijing pledged to help them support the economy. The fundraising, which aims to boost the banks' core Tier-1 capital, comes after Chinese policymakers vowed earlier this month to recapitalize major state banks to the tune of 500 billion yuan to boost their ability to bolster the real economy. Their shares rose on Monday a day after the plans were announced. Bank of China said it aims to raise up to 165 billion yuan and China Construction Bank plans private placements of up to 105 billion yuan, filings released by the banks on Sunday said. Bank of Communications said it will sell shares of as much as 120 billion yuan, and Postal Savings Bank of China will raise up to 130 billion yuan. China's Finance Ministry, a major shareholder of the four banks, will be involved in all four capital raises, the filings showed. The ministry is set to become the controlling shareholder for Bank of Communications following the share issue, the bank said in its filing. China's major banks have reported flat annual profits and lower margins as a slowing economy and a struggling property sector have weighed on their earnings. Analysts have urged Chinese officials to quickly capitalize the country's big banks to help them boost lending to revive faltering growth and manage asset quality strains. Chinese banks' profitability, which has already been under pressure due to the economic slowdown and a prolonged property market crisis, is expected to be further squeezed by potential cuts to key interest rates this year. China has set its economic growth target for this year at roughly 5%, unchanged from last year, as the government pledged more fiscal resources to fend off deflationary pressures and offset the impact from US tariffs. Sign in to access your portfolio
CNN
31-03-2025
- Business
- CNN
China beefs up its biggest banks to boost the economy
Four of China's largest state-owned banks said on Sunday they plan to raise a combined 520 billion yuan ($71.60 billion) in private placements from investors, including the finance ministry, after Beijing pledged to help them support the economy. The fundraising, which aims to boost the banks' core Tier-1 capital, comes after Chinese policymakers vowed earlier this month to recapitalize major state banks to the tune of 500 billion yuan to boost their ability to bolster the real economy. Their shares rose on Monday a day after the plans were announced. Bank of China said it aims to raise up to 165 billion yuan and China Construction Bank plans private placements of up to 105 billion yuan, filings released by the banks on Sunday said. Bank of Communications said it will sell shares of as much as 120 billion yuan, and Postal Savings Bank of China will raise up to 130 billion yuan. China's Finance Ministry, a major shareholder of the four banks, will be involved in all four capital raises, the filings showed. The ministry is set to become the controlling shareholder for Bank of Communications following the share issue, the bank said in its filing. China's major banks have reported flat annual profits and lower margins as a slowing economy and a struggling property sector have weighed on their earnings. Analysts have urged Chinese officials to quickly capitalize the country's big banks to help them boost lending to revive faltering growth and manage asset quality strains. Chinese banks' profitability, which has already been under pressure due to the economic slowdown and a prolonged property market crisis, is expected to be further squeezed by potential cuts to key interest rates this year. China has set its economic growth target for this year at roughly 5%, unchanged from last year, as the government pledged more fiscal resources to fend off deflationary pressures and offset the impact from US tariffs.
CNN
31-03-2025
- Business
- CNN
China beefs up its biggest banks to boost the economy
Four of China's largest state-owned banks said on Sunday they plan to raise a combined 520 billion yuan ($71.60 billion) in private placements from investors, including the finance ministry, after Beijing pledged to help them support the economy. The fundraising, which aims to boost the banks' core Tier-1 capital, comes after Chinese policymakers vowed earlier this month to recapitalize major state banks to the tune of 500 billion yuan to boost their ability to bolster the real economy. Their shares rose on Monday a day after the plans were announced. Bank of China said it aims to raise up to 165 billion yuan and China Construction Bank plans private placements of up to 105 billion yuan, filings released by the banks on Sunday said. Bank of Communications said it will sell shares of as much as 120 billion yuan, and Postal Savings Bank of China will raise up to 130 billion yuan. China's Finance Ministry, a major shareholder of the four banks, will be involved in all four capital raises, the filings showed. The ministry is set to become the controlling shareholder for Bank of Communications following the share issue, the bank said in its filing. China's major banks have reported flat annual profits and lower margins as a slowing economy and a struggling property sector have weighed on their earnings. Analysts have urged Chinese officials to quickly capitalize the country's big banks to help them boost lending to revive faltering growth and manage asset quality strains. Chinese banks' profitability, which has already been under pressure due to the economic slowdown and a prolonged property market crisis, is expected to be further squeezed by potential cuts to key interest rates this year. China has set its economic growth target for this year at roughly 5%, unchanged from last year, as the government pledged more fiscal resources to fend off deflationary pressures and offset the impact from US tariffs.
