Zhou Xiang is playing with his mobile phone in a room just big enough for a desk and chairs at the year-old Wenzhou Private Lending Registration Center. Not a single prospective customer has shown up for hours.
China faces many challenges in its efforts to maintain the health of the banking industry, including risks from local government financing vehicles, property loans and industrial overcapacity, bank regulator Liu Mingkang said.
China’s stocks fell the most in 10 weeks on speculation the government won’t ease monetary policy as quickly as anticipated and after Citigroup Inc. said the economic growth slowdown will extend into next year.
China needs to speed the pace of domestic reform and change its economic model to become less reliant on exports and reduce the impact of crises such as the one roiling Europe, said former banking regulator Liu Mingkang.
Most Asian stocks outside Japan and China rose, led by mining companies, amid speculation U.S. stimulus measures will boost global demand. Shares in Shanghai and Hong Kong retreated as Citigroup Inc. cut its 2013 growth outlook for China.
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.
China will increase the movement of the yuan’s exchange rate “appropriately” to handle the latest rounds of quantitative easing by the world’s central banks, the official Xinhua News Agency said in an editorial.