China Financial Daily:China P2P Loans Up 101%YoY to Rmb816bn in 2016
China P2P Loans Up 101% YoY to Rmb816bn in 2016 (Xinhua, Jan 4)
P2P loan balance in China grew by 101% YoY in 2016 to Rmb816.2bn withP2P transaction value amounting to Rmb2.06trn during the year, according todata from Wangdaizhijia. P2P product yield dropped by 284bps compared withthe previous year to 9.76% at end of 2016. Average P2P loan term rose to 7.89months from 6.81months in 2015. However, due to the regulation tightening,number of P2P platform in China decreased by 985 from 2015 to 2,448 withonly 3% of the platforms signing custodian agreement with banks. Custodianservice provided by banks may cost around 50bps of transaction value for P2Pplatform, as reported by local media.
Shandong Local AMC Received Rmb1.7bn Capital Injection (Sina, Jan 4)
Shandong Provincial Asset Management (Shandong AMC) recently receivedRmb1.7bn capital boost from five strategic investors which accounts for 42.5%of its enlarged shares. The five strategic investors include ShandongInternational Trust, CNPC Assets Management, Yantai Xinzhentianying EquityInvestment Center, Liaocheng Finance Development and Binzhou AssetManagement. Shandong AMC was set up in December 2014 to conduct NPLacquisition and disposal in local region, with total assets and equity reachingRmb8.9bn and Rmb2.1bn as of 3Q16. Shandong AMC previously planned toexpand equity base to Rmb10bn. Shandong province has another local AMCnamed Qingdao AMC, which was set up in March 2016 and was the first citylevellocal AMC in China.
ANZ Sold 20% Stake in Shanghai Rural Commercial Bank (China Sec. Journal,Jan 5)
ANZ Bank Announced to sell all its 20% stake holding in Shanghai RuralCommercial Bank with total consideration of Rmb9.2bn, equivalent to 1.1x2015 P/B pricing. COSCO and Shanghai Sino-Poland will each purchase 10%stake in the transaction. ANZ invested in Shanghai Rural Commercial Bank inSeptember 2007 with total investment of AUD568mn, and the divestment willbring AUD1.3bn equity gains to the Australian bank. ANZ also earnedAUD178mn dividend from this investment over the years.
PBOC Withdrew Rmb140bn liquidity via OMO on Wednesday (PBOC, Jan 4)
The central bank conducted Rmb10bn 7-day reverse repo and Rmb10bn 14-day reverse repo on Wednesday. As there was Rmb160bn reverse repomaturing on the same day, PBOC effectively withdrew Rmb140bn liquidityfrom the market.