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Shadow finance slowdown squeezes credit

Formal and shadow bank credit recorded a sharp sequential increase in March, but declined YoY, largely due to a scaling back of shadow financing. The sum of total social financing (TSF) – the widest official measure of financing in the economy – and underground lending totalled Rmb2.3tn in March, up 96.5% MoM but down 16.4% YoY. This brought overall credit growth in 1Q14 to Rmb6.3tn, 9% lower than credit growth recorded in 1Q13.

15 April 2014

Chinese banks feel the squeeze

An analysis of listed banks’ 2013 results highlights the negative impact of the shadow finance squeeze on banks’ interest income, profits and non-performing loan ratios since the middle of last year.

10 April 2014

Selected financial charts

A selection of key financial data over the past fortnight.

10 April 2014

Focus Media heading to Hong Kong?

DANWEI - Although we would question its out-of-home advertising business model in the age of smart phones, Focus Media may soon list in Hong Kong. Also this week: 100.com is trying to challenge New Oriental in online education, and more. In the Mai-Mai Index we look at the battle between China’s two leading taxi-hailing apps on social media.

04 April 2014

Tarena IPO: Questions from the Chinese Internet

DANWEI - The Chinese education services company Tarena is set for a Nasdaq IPO. This week we consider online complaints about the company that suggest important lines of enquiry for potential investors. Also this week, new players are set to threaten the big three Chinese telecom operators, and in the Mai-Mai Index we look at Chinese sportswear brands on Weibo.

31 March 2014

Selected financial charts

A selection of key financial data over the past fortnight.

27 March 2014

Shadow finance crackdown hits bonds

China’s bond markets have suffered from the squeeze on shadow finance liquidity seen since mid-2013, potentially undermining broader efforts to promote bond markets as a viable financing alternative to shadow finance channels.

27 March 2014

Tracking China’s low-entry Internet investment products

DANWEI - In this edition of the Danwei Bulletin we launch a new section that will track China’s low-entry Internet investment products. We also look at Tencent’s WeChat: some Chinese media commentary suggests its popularity has peaked. Lastly this week: dodgy dealings in online dating and real estate classifieds.

21 March 2014

Virtual credit cards and online drug sales

DANWEI - In the Danwei Bulletin this week we look at why Alibaba’s acquired ChinaVision; its involvement with CITIC for “virtual credit cards”; and a mysterious website that has been given permission to sell drugs online and may also belong to Alibaba. In the Mai-Mai Index, we dissect a massive peak in discussions of financial products on Weibo in February.

14 March 2014

Banks in a bind over WMPs

Banks are under pressure to sell higher-yielding WMPs to shore up deposits even as their interest spreads narrow, likely squeezing their profits this year.

13 March 2014

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