tailfins
08-28-2012, 08:17 PM
Making loans to loosen credit:
http://www.ft.com/intl/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#axzz24tSe9gqn
And writing anti-Romney stories for other media to pick up:
http://thecable.foreignpolicy.com/posts/2012/08/28/chinese_media_slams_romney_as_convention_begins
If you have trouble with first link:
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#ixzz24tVX1t1F
Chinese banks step up lending in the US
By Kandy Wong in New York
China’s top banks are stepping up their lending activities in the US as large US companies diversify their funding sources and seek to penetrate more deeply into the world’s second-largest economy.
Chinese banks’ share of US syndicated lending has risen to 6.1 per cent of the total market so far in 2012, up from 5.1 per cent last year, according to data from Dealogic. So far this year, the total value of syndicated loans from Chinese banks into the US has reached $51bn.
More
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Liao Qiang, Chinese banking analyst at Standard & Poor’s, said: “Many global banks have been deleveraging as a result of the 2008 global financial crisis and the debt crisis in Europe. Their retreat in lending markets provides opportunities for Chinese banks to deepen relationships with the multinational companies and steadily increase their international presence.”
The increased syndicated lending by Chinese banks comes as their balance sheets compare favourably with US counterparts.
Standard & Poor’s last year upgraded the long term credit ratings of Bank of China and China Construction Bank from A- to A. The credit rating agency maintained the rating of Industrial and Commercial Bank of China (ICBC) at A. At the same time, the long-term credit ratings of Bank of America, Citigroup and Goldman Sachs were cut to A-.
Among the latest deals, Bank of China is involved in a $1.4bn syndicated loan to Zimmer Holdings, the medical device company, and Bank of East Asia is part of a $575m loan syndication to Constellation Brands, the wine and beer group.
Industrial and Commercial Bank of China took part in an $11.8bn syndicated loan for Walmart, the US retailer.
Bi Mingqiang, general manager of ICBC’s New York branch, said the bank was seeking long-term lending relationships with US companies which had a presence in China and elsewhere. The bank provides credit to United Parcel Service, Pfizer and Dell.
UPS said linking with a Chinese bank had made it easier to conduct business in renminbi, while Dell said it had developed relationships with Chinese banks for the same reason.
CCB’s clients include General Electric, and the bank has also had discussions with Caterpillar, Walt Disney, Tiffany and Cargill.
John Weinshank, head of corporate banking at CCB, added that lending was only a starting point to extend into other businesses, such as deposit and trade finance.
CCB’s lending business in the US has risen from $600m in 2009 to $2bn this year, while ICBC, which established a New York branch in 2008, had made more than $1.3bn of loans to US companies at the end of 2011 compared with zero at the start of 2009.
Last year, ICBC, Bank of China and China Merchant Bank participated in a $6bn syndicated loan to Duke Energy – the first time the North Carolina-based energy group borrowed money from Chinese banks.
“There’s a global relocation of capital from the west to the east. This is an evolution process,” said Mr Weinshank. “Nowadays, the Brics banks [in Brazil, Russia, India and China] have a seat at the table.”
He said ratings upgrades of Chinese banks represented a turning point for large US companies to consider Chinese groups as lenders.
http://www.ft.com/intl/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#axzz24tSe9gqn
And writing anti-Romney stories for other media to pick up:
http://thecable.foreignpolicy.com/posts/2012/08/28/chinese_media_slams_romney_as_convention_begins
If you have trouble with first link:
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#ixzz24tVX1t1F
Chinese banks step up lending in the US
By Kandy Wong in New York
China’s top banks are stepping up their lending activities in the US as large US companies diversify their funding sources and seek to penetrate more deeply into the world’s second-largest economy.
Chinese banks’ share of US syndicated lending has risen to 6.1 per cent of the total market so far in 2012, up from 5.1 per cent last year, according to data from Dealogic. So far this year, the total value of syndicated loans from Chinese banks into the US has reached $51bn.
More
On this story
CDB chief leads China’s thrust overseas
Economists weigh Chinese ‘hard landing’
Debt crisis sends European blue-chips to bonds
On this topic
May opposes relaxing Chinese visa rules
Drop in China trade growth stirs concern
China dip sends iron ore to nine-month low
Beijing exports weigh on Africa’s producers
IN Emerging Markets
Injectables take centre stage at Hikma
China slowdown fears overstated, says Mobius
Indonesia must not put good fortune to the test
Wipro offers timid revenue outlook
Liao Qiang, Chinese banking analyst at Standard & Poor’s, said: “Many global banks have been deleveraging as a result of the 2008 global financial crisis and the debt crisis in Europe. Their retreat in lending markets provides opportunities for Chinese banks to deepen relationships with the multinational companies and steadily increase their international presence.”
The increased syndicated lending by Chinese banks comes as their balance sheets compare favourably with US counterparts.
Standard & Poor’s last year upgraded the long term credit ratings of Bank of China and China Construction Bank from A- to A. The credit rating agency maintained the rating of Industrial and Commercial Bank of China (ICBC) at A. At the same time, the long-term credit ratings of Bank of America, Citigroup and Goldman Sachs were cut to A-.
Among the latest deals, Bank of China is involved in a $1.4bn syndicated loan to Zimmer Holdings, the medical device company, and Bank of East Asia is part of a $575m loan syndication to Constellation Brands, the wine and beer group.
Industrial and Commercial Bank of China took part in an $11.8bn syndicated loan for Walmart, the US retailer.
Bi Mingqiang, general manager of ICBC’s New York branch, said the bank was seeking long-term lending relationships with US companies which had a presence in China and elsewhere. The bank provides credit to United Parcel Service, Pfizer and Dell.
UPS said linking with a Chinese bank had made it easier to conduct business in renminbi, while Dell said it had developed relationships with Chinese banks for the same reason.
CCB’s clients include General Electric, and the bank has also had discussions with Caterpillar, Walt Disney, Tiffany and Cargill.
John Weinshank, head of corporate banking at CCB, added that lending was only a starting point to extend into other businesses, such as deposit and trade finance.
CCB’s lending business in the US has risen from $600m in 2009 to $2bn this year, while ICBC, which established a New York branch in 2008, had made more than $1.3bn of loans to US companies at the end of 2011 compared with zero at the start of 2009.
Last year, ICBC, Bank of China and China Merchant Bank participated in a $6bn syndicated loan to Duke Energy – the first time the North Carolina-based energy group borrowed money from Chinese banks.
“There’s a global relocation of capital from the west to the east. This is an evolution process,” said Mr Weinshank. “Nowadays, the Brics banks [in Brazil, Russia, India and China] have a seat at the table.”
He said ratings upgrades of Chinese banks represented a turning point for large US companies to consider Chinese groups as lenders.