Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

Investment not enough for banks

By Xiong Jinqiu (Global Times)

08:25, October 22, 2012

Central Huijin Investment Ltd (Huijin), an investment unit of China's sovereign wealth fund, has been increasing its share holdings in China's four largest commercial lenders over the last year in a bid to shore up investor confidence in these institutions.

Equity investors have been turning their backs on the country's commercial banks because of concerns about the efficiency of their management practices and their risk management abilities. Huijin's investment moves will do little to allay these concerns or provide banks with strong incentives to shape up their operations.

What investors really care about right now is whether banks can survive as their non-performing loans swell, and whether they can continue to increase their profits as the country gradually liberalizes interest rates.

Rather than just handing them money, Huijin should help these banks choose qualified independent directors with the knowledge and experience to strengthen their businesses.

News we recommend:
House prices nudge upward in September Islands dispute benefits carmakers' competitors Sany's bid to usurp Caterpillar
Falsely labeled crabs upset the market A Boon to the Economy 'Right time' for London to build RMB business
Beijing offices still hot properties  The consuming challenge of food safety The dawn of a new growth era


Leave your comment0 comments

  1. Name


Selections for you

  1. Weekly review of military photos

  2. Chinese conducts exercise in East China Sea

  3. Music dream in slums

  4. Same-sex wedding performed in Fujian Province

  5. Asia's largest Apple store opens in Beijing

  6. Zhejiang Real Estate Expo kicks off

  7. 14th Shanghai International Arts Festival

  8. Sexy photos of top lingerie model

Most Popular


  1. Commentary: Stimulus should be small
  2. Why foreign investors should stay?
  3. Blessed are those who are happy
  4. Experts on touch-and-go landing on the Liaoning
  5. There is no justification for street violence
  6. Tokyo shrine visit angers neighbors
  7. BRICS can build optimism
  8. Rich list shines a light on China’s shifting economy
  9. Indigenous industry key to change
  10. Miners must break ground overseas

What’s happening in China

Foreign schools woo Chinese students

  1. Director claims film producers trying to profit from island row
  2. Couple's road-trip romance makes a moving book
  3. Two surrogacy services raided
  4. Beijing prepares to get smart
  5. Chinese telecom fraud gang busted, 86 arrests