Latest News:  
Beijing   Moderate rain/Moderate to heavy rain    10 / 1 ℃  City Forecast

English>>China Business

S&P: Big Four banks' balance sheets strong

By Gao Changxin (China Daily)

10:42, November 03, 2012

Large Chinese banks' balance sheets remain strong despite their rapid international expansion in recent years, the credit rating agency Standard & Poor's said on Thursday.

In a report published in Hong Kong, the agency said the banks' global push won't affect their ratings over the next two to three years, though some lenders' profitability might be hurt in the domestic market due to escalating competition.

China's Big Four State-owned banks, Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, Agricultural Bank of China Ltd and Bank of China Ltd, are rated in the top class of ratings by the agency.

Generally, aggressive overseas expansion increases a bank's risk exposure by subjecting it to swings in the overseas market, though it will benefit in the long run.

The agency sees it as "an unlikely scenario" that Chinese banks will be substantially affected by overseas markets.

Part of the reason is that Chinese banks mostly expand through organic growth rather than acquisitions and, despite their fast growth, their overseas assets remains low as a percentage of their total assets, at below 10 percent.

Chinese banks started to venture overseas in recent years, following in the footsteps of other Chinese companies, whose growing overseas operations created huge demand for financial services.

Overseas investment and acquisitions by Chinese companies more than doubled to $380 billion at the end of 2011 from $170 billion at the end of 2008.

Chinese banks currently have 1,148 overseas branches in Asia, Europe, the Middle East and the Americas, up 29 percent from 2010.

【1】 【2】

News we recommend:
[Special]'Made in China' Revisited Chinese property companies speed up Yuan set to be more flexible
Software changes its China business model Alarm raised over Apple 'erotic' app HNA Group buys 48% stake in French airline
Asian economies turn to yuan  Yuan at highest value versus US dollar Policies raise hope for Chinese PV solar


Leave your comment0 comments

  1. Name


Selections for you

  1. APF troop unit conducts conscription publicity

  2. J-10 takes off from China’s aircraft carrier

  3. DPRK’s leader watches soccer game

  4. People have fun at Angry Birds theme park

  5. Cute giant panda cubs

  6. China's manufacturing picks up in October

  7. Everybody was kung fu fighting

  8. Rare skull-faced caterpillar

Most Popular


  1. Mahjong eligible for world heritage
  2. Noda cabinet hangs by a thread
  3. Strong yuan poses risk for economy
  4. Time to rethink music profit models
  5. Policy support for private sector
  6. Japan urged to face change on Diaoyu issue
  7. What kind of 'busy culture' do we need?
  8. 'Noah's Flood' breaks down the cultural barrier
  9. A vital asset for emerging ratings agency
  10. Clearing the path for global currency

What’s happening in China

Online dating, a rising trend in China

  1. Use of China's Beidou GPS technology spreading
  2. Banned drug found in pork sample
  3. Security check includes pat down of bra, undies
  4. Migrants to be half of city population
  5. Fines set for overseas births over legal limits