China Construction Bank Asia Corp. is marketing a sale of dollar-denominated bonds, testing demand for the nation’s bank debt after the cost of insuring similar notes jumped the most in Asia this year.
As a young man during China’s Cultural Revolution, Jiang Jianqing was sent to the countryside to work as a farmer and a coal miner. This week, he arrives at the top of a Swiss mountain as chairman of the world’s most- profitable bank and representative of the most-populous nation.
The story of how a 3 billion-yuan ($496 million) Chinese trust investment wound up on the brink of default shows what billionaire investor George Soros has called the “eerie resemblances” between the 2008 global financial crisis and the nation’s debt market.
China banks’ weighted average capital adequacy ratio rose to 11.1 percent as of March 31 from minus 2.98 percent in 2003, Liu Mingkang, chairman of China Banking Regulatory Commission, said at a financial forum in Shanghai today.
China moved its securities regulator Shang Fulin to head the nation’s banking watchdog, overseeing a 106 trillion-yuan ($17 trillion) industry that includes four of the world’s 10 largest lenders by market value.
A group of Vietnamese banks and funds asked the government to raise a cap on foreign ownership in lenders to 35 percent to 40 percent, according to a statement on the website of the Vietnam Association of Financial Investors .