Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Analysis: How Will Biden’s CHIPS Bill Alter the Global Landscape?
Kuaishou Dives Into Cloud Services and Chipmaking
LATEST
Analysis: How Will Biden’s CHIPS Bill Alter the Global Landscape?
Kuaishou Dives Into Cloud Services and Chipmaking
China’s Tsingshan Looms Over Tesla’s $5 Billion in Indonesian Nickel Deals
Kuaishou Sets Up New Management Committee, a Year After Massive Restructuring
Vivo Becomes Latest Chinese Smartphone-Maker Accused of Tax Evasion in India
Retailer Gome Upends E-Commerce Unit, Fires Staff
China Rolls Out Short-Message BeiDou Chip for Smartphones
China’s Game Approval List Again Leaves Out Tencent and NetEase
U.S. Expands Ban on Sales of Chipmaking Gear to China
China Semiconductor Fund Graft Scandal Widens as Another Executive Probed, Sources Say
Chinese Online Grocer Missfresh Shutters Core Business After Failing to Secure a Lifeline
Nasdaq-Traded Kingsoft Cloud Files for Dual Primary Listing in Hong Kong
Hog Cannibalism Clip Spotlights Grim Plight of China’s Pork Producers
Huawei Launches Ride-Hailing Platform in Challenge to Didi’s Dominance
China Tightens Grip on Ride-Hailing Platforms’ Data Practices
China to Start Pilot to Speed Up Online Game Approvals
Baidu, Pony.ai to Be First to Offer Driverless Robotaxis in Beijing
Chinese Biotech Duo Eyes $2.8 Billion Singapore Expansion
Huawei Steps Up Debt Financing With $593 Million Onshore Bond Sale
Geely Founder-Backed Auto Chip Startup SiEngine Raises $148 Million
Exclusive: Baoshang Takeover Impact Diminishing, Top Regulator Says

By Zhu Liangtao and Denise Jia / Jun 14, 2019 04:25 AM / Finance

Guo Shuqing. Photo: VCG

Guo Shuqing. Photo: VCG

The head of China’s banking regulator said interbank liquidity was somewhat affected by the recent government takeover of a troubled private bank, but now the situation is improving.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC) and party chief of the central bank, made the comments to Caixin reporters Thursday on the sidelines of the Lujiazui Forum, an annual gathering of senior financial regulators, experts and market participants.

The CBIRC took control of Baoshang Bank last month for a year, citing “severe credit risk” posed by the small Inner Mongolia bank.

The bank relied heavily on the interbank market, where banks borrow from each other, using funds so raised to bolster liquidity, which allowed it to leverage up.

The takeover dampened the market for interbank certificates of deposit (CDs). Actual issuance of such CDs declined to less than half of the issuers’ planned borrowing in the few days after the takeover on May 24. Issuance has since recovered to about 60% of planned volume but is still significantly lower than the 85% rate before the Baoshang takeover, data from China International Capital Corp. (CICC) showed.

Related: China Reduces High-Risk Financial Assets by Net $2 Trillion: Regulator

Share this article
Open WeChat and scan the QR code