China took another step to clamp down on leverage in the financial system, ordering banks to ensure they are not exposed to risks from their entrusted loan business.
Banks can only act as intermediaries when arranging entrusted loans, and must not provide guarantees or get involved in decision-making, according to new rules posted in a statement on the China Banking Regulatory Commission’s website over the weekend.
The entrusted loan business, which normally involves companies providing finance to each other with banks acting as intermediaries, has seen “certain potential risk hazards” due to rapid growth and a lack of regulations, according to the CBRC statement. Entrusted loans cannot be used for investments in bonds, derivatives, asset management products or equities, the CBRC said.
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The new CBRC rules will have a limited impact on Chinese banks’ revenues because the entrusted loan business was already on the decline, following rapid growth in the three years to 2016, China International Capital Corp analysts including Victor Wang said in a note. Investments through entrusted loans reached 7.4 trillion yuan (US$1.14tn) at the end of 2016, the CICC analysts said.
President Xi Jinping and his senior economic officials have vowed to make controlling financial risks a top priority, a pledge renewed at the Communist Party’s twice-a-decade leadership congress in October. Since April, regulators have stepped up efforts to curb the threat that excessive leverage in the financial system poses to economic growth.
DUNE: PART TWO
Director: Denis Villeneuve
Starring: Timothee Chamalet, Zendaya, Austin Butler
Rating: 5/5
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
Drishyam 2
Directed by: Jeethu Joseph
Starring: Mohanlal, Meena, Ansiba, Murali Gopy
Rating: 4 stars
Killing of Qassem Suleimani
Company Profile
Name: Takestep
Started: March 2018
Founders: Mohamed Khashaba, Mohamed Abdallah, Mohamed Adel Wafiq and Ayman Taha
Based: Cairo, Egypt
Sector: health technology
Employees: 11 full time and 22 part time
Investment stage: pre-Series A