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China wins again! CCB, AgBank chiefs to replace regulators

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As Liu Mingkang and Wu Dingfu of the Banking and insurance regulators cross the age of 65, CCB and AgBank chiefs stepped down this Saturday morning to take up the spots to open in Beijing Gio Shuqing resigned as chairman of CCB and Xiang Junbo as Chairman of AgBank quit their positions in the early hours after the earnings announcements at the banks. The two will replace Liu and Wu allowing the NPC to maintain the age limit of 65 for retirement

Results show that despite challenges in market development of bonds, stock and insurance markets in the nation, the new regulatory agency incumbents are unlikely to face trouble from the crisis around excessive lending to Local LSFs (LGFVs) According to the WSJ, China’s banks were also last party to a reshuffle in 2009 when 5 VPs were exchanged between the banks and CBRC. Guo came in as Head of CCB from his Dy Governor role at the PBOC in 2001 before the Huijin was reorganised

Xiang may be appointed chairman of the China Insurance Regulatory Commission, and Guo the head of the China Securities Regulatory Commission, Reuters reported yesterday, citing three people it didn’t identify.

CCB Profits for the year to date came behind that of leader ICBC but 39% over AgBank’s Yn 100 bln at Yn 139 bln /$ 21.5 bln ( Our

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conversion at $1= Yn 6.45) The quarters profits were also higher by 17% at $7.16 bln more than twice the DVA led profits at American banks

CCB and BOC have bucked the trnd of strong profit growth in the third quarter apparently because of European exposure and not bad debts

CCB’s loan assets are a $1 Tln as of Sept 30 (Yn 6.35 Tln) and a quarterly net income of Yn 77.3 bln took its NII for the year to Yn 223 bln or $34.6 bln Fee and Commission income is still 20% higher than that of pretender AgBank at 21 bln Yuan

Between 1-2 Tln Yuan of the Yn 12 Tln Local LSF debt was expected to go bad and the government had instructed the banks to add back a third to their balance sheets instead of off balance sheet exposure. Huijin has been buying bank stakes since earlier this month. The President and Premier of China also change over next year as Xi jinping and Li Keqiang take over from Hu Jintao and Wen Jiabao

 

 

 

One comment on “China wins again! CCB, AgBank chiefs to replace regulators

  1. Pingback: China’s bank regulators may not put on the screws.. | China Insight | The Banking and Strategy Initiative

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