Latest news with #ZouLan
Yahoo
30-04-2025
- Business
- Yahoo
Chinese Bank Shares Slump as Earnings Show Margin, Profit Pain
(Bloomberg) -- Shares of Chinese banks slumped following weak earnings, with analysts concerned the global trade war will further undermine their profit. New York City Transit System Chips Away at Subway Fare Evasion NYC's Congestion Toll Raised $159 Million in the First Quarter The Last Thing US Transit Agencies Should Do Now At Bryn Mawr, a Monumental Plaza Traces the Steps of Black History At the National Public Housing Museum, an Embattled Idea Finds a Home Lenders were the worst performers in the Hang Seng China Enterprises Index after some of them reported a drop in profit and lower margins. Industrial & Commercial Bank of China Ltd. fell as much as 6% in Hong Kong, after China's biggest bank saw its net income fall 4% in the first quarter. Shares in China Merchants Bank Co. and Postal Savings Bank of China Co. slid at least 5%. The financial health of Chinese lenders is being closely watched as Beijing gears up for a deepening trade dispute with the US. Banks' profits were already under pressure after China stepped up monetary stimulus late last year, lowering rates applied on loans and mortgages. Analysts are also worried the escalating trade war will hurt the banks' overseas business. Banks 'continue to face pressure of having to support the China economy amid an uncertain economic environment and this is evident in numerous banks reporting falls in net profits,' said Michael Chang, head of Asia financials at CGS International Securities HK. 'Net interest margins are still on a downward trajectory, with no signs of any bottoming amid likely continued monetary easing.' Chinese officials have indicated they may further loosen monetary conditions to bolster the economy, suggesting lenders will continue to face margin squeeze. China will lower reserve requirement ratio and interest rates based on domestic and international economic situation, to ensure ample liquidity, the People's Bank of China's Deputy Governor Zou Lan said at a briefing this week. The slide in banking shares drove a 0.4% drop in the Hang Seng China Enterprises Index, which underperformed the MSCI Asia Pacific gauge's advance. China Construction Bank Corp. saw a big decline as shares traded ex-dividend. 'Most of the big lenders saw a pretty big contraction in net interest margin from end of last year, largely thanks to mortgage loans repricing in January after earlier cuts in loan prime rates,' said Francis Chan, an analyst with Bloomberg Intelligence. 'The outlook for margins doesn't look so rosy either as there's bigger probability of more rate cuts this year.' --With assistance from Amanda Wang. (Updates with BI comment, shows China Construction Bank is trading ex-dividend.) Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Eight Charts Show Men Are Falling Behind, From Classrooms to Careers The Mastermind of the Yellowstone Universe Isn't Done Yet ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
30-04-2025
- Business
- Mint
Chinese Bank Shares Slump as Earnings Show Margin, Profit Pain
(Bloomberg) -- Shares of Chinese banks slumped following weak earnings, with analysts concerned the global trade war will further undermine their profit. Lenders were the worst performers in the Hang Seng China Enterprises Index after some of them reported a drop in profit and lower margins. Industrial & Commercial Bank of China Ltd. fell as much as 5.1% in Hong Kong, after China's biggest bank saw its net income fall 4% in the first quarter. Shares in China Merchants Bank Co. and Postal Savings Bank of China Co. slid at least 5%. The financial health of Chinese lenders is being closely watched as Beijing gears up for a deepening trade dispute with the US. Banks' profits were already under pressure after China stepped up monetary stimulus late last year, lowering rates applied on loans and mortgages. Analysts are also worried the escalating trade war will hurt the banks' overseas business. Banks 'continue to face pressure of having to support the China economy amid an uncertain economic environment and this is evident in numerous banks reporting falls in net profits,' said Michael Chang, head of Asia financials at CGS International Securities HK. 'Net interest margins are still on a downward trajectory, with no signs of any bottoming amid likely continued monetary easing.' Chinese officials have indicated they will further loosen monetary conditions to bolster the economy, suggesting lenders will continue to face margin squeeze. China will lower reserve requirement ratio and interest rates based on domestic and international economic situation, to ensure ample liquidity, the People's Bank of China's Deputy Governor Zou Lan said at a briefing this week. The slide in banking shares drove a 0.7% drop in the Hang Seng China Enterprises Index, which bucked a broader advance in Asia. China Construction Bank Corp. shares plunged as much as 7.8% to wipe out this year's gain. (Updates with a chart, analyst comment.) More stories like this are available on First Published: 30 Apr 2025, 09:25 AM IST
Business Recorder
30-04-2025
- Business
- Business Recorder
Yuan hits highest level since April 2
HONG KONG: China's yuan rose on Tuesday to its strongest level against the US dollar in nearly a month, recovering from losses sustained after the US announced hefty tariffs, as Beijing signalled a commitment to currency stability. The yuan strengthened to as much as 7.2710 per dollar in Asian trade, in strongest level since April 2, while its offshore counterpart climbed to 7.2730, up about 0.15%. The dollar slipped overnight after US Treasury Secretary Scott Bessent told CNBC it was 'up to China to de-escalate' tariffs, leaving investors unsure whether the Sino-US trade war was abating. That followed comments from the People's Bank of China Deputy Governor Zou Lan underlining a commitment to currency stability. He reiterated in a press conference on Monday that the bank would firmly correct pro-cyclical behaviours and prevent overshooting risks.
Bloomberg
28-04-2025
- Business
- Bloomberg
China Downplays Impact of Treasuries Swings on Its FX Reserves
A senior Chinese central bank official played down the impact of Treasury market volatility on the country's foreign exchange reserves, arguing Beijing had diversified its foreign assets enough to soften the blow. 'We have noticed the volatility in Treasuries' as investors in the international financial market recently paid more attention to risks in dollar assets following the US tariff hikes on major economies, Zou Lan, a deputy governor of the People's Bank of China, said at a Monday briefing.
