(Reuters) - China's state banks make money "too easily" and their monopoly on financial services has to be broken if cash-starved private enterprises are to get access to capital when they need it, state media cited Premier Wen Jiabao as saying on Tuesday.
NEW YORK/HONG KONG — JPMorgan Chase & Co paid US$1.8 million over two years to a small consulting firm run by the daughter of former Chinese Premier Wen Jiabao, The New York Times reported on Thursday, a relationship that is part of a wider U.S. probe into the Wall Street bank’s hiring practices in the region.
Chinese stock have been on a 2-day tear as Premier Wen Jiabao has come flat out in support of the stock market.
Moreover, money supply in China is up the most since last April and new Chinese loans exceeded the estimates of all 18 Bloomberg economists. M2 rose 13.6 percent, the fastest pace since July.
Bloomberg reports China Stocks Rise Most in 3 Months on Loan, Money Data
On Friday, China’s Ministry of Finance sold only 9.53 billion yuan of government bills, far less than the 15 billion yuan offered. It was the first failed Finance Ministry auction since July 2011. To add insult to injury, Beijing had to pay 3.76% on the 273-day bills, higher than the 3.14% yield on similar obligations already in the market. That’s the second failed Chinese auction this month. The state-owned Agricultural Development Bank of China sold only 11.51 billion yuan of six-month bills in a 20-billion-yuan offering on the 6th.
The Ponzi schemes and off-balance sheet loans in China's banking system are in the forefront of today's news. Reuters reports Bank of China executive warns of shadow banking risks
A senior Chinese banking executive has warned against the proliferation of off-book wealth management products, comparing some to a Ponzi scheme in a rare official acknowledgement of the risks they pose to the Chinese banking system.