Business
More Bank Runs Worry Chinese Regulators, Investors
News Analysis
Warning signs are flashing all over China’s banking sector.
Chinese regulators have seized or bailed out lenders at an unprecedented pace amid a surge in bad debt, while forcing banks to step up lending at increasingly lower interest spreads. That keeps banks in business, but it’s not a recipe for future longevity.
Increasing worries about the health of China’s financial system have hit investor confidence in banks and hurt recent capital raising efforts as well.
I wrote in August that after three Chinese bank bailouts in three months, more would follow. After a few months of calm, two local bank runs in November have added fuel to the fire.
Yingkou Coastal Bank is the latest to suffer a bank run. Yingkou faced a “flash mob” of customers who feared that the bank was on the verge of collapse. The Liaoning Province-based bank stacked bundles of yuan notes behind the counters of its branches in a show of confidence in the face of customers lining up to withdraw, according to a Reuters report. Local government officials also were sent to bank branches to calm customers and promise that the bank had sufficient liquidity.
The state bailout of Inner Mongolia regional lender Baoshang Bank earlier this year sparked a string of small bank bailouts, including Hengfeng Bank Co. and Bank of Jinzhou.
Yingkou had to sweeten financial incentives to entice its customers to stay. “To help repair the damage, Yingkou hiked its already high deposit interest rates,” Reuters reported.
The latest crisis followed an earlier November bank run at Henan Yichuan Rural Commercial Bank, a small bank based near Luoyang, in Henan Province.
Several Bank Runs in 2019
Yingkou’s crisis couldn’t have come at a worse time.
Small banks have become more dependent on deposit customers after Baoshang’s shocking bailout earlier this year sent interbank interest rates soaring. That means short-term funding for small banks became too expensive, and banks had to increasingly rely on customer deposits for funding.
When Baoshang Bank was taken over by Beijing regulators in May,…
Business
EU’s Solar Initiatives in Southeast Asia Impacted by US-China Trade Tensions
中国拥有的太阳能公司在东南亚，尤其是泰国、越南、马来西亚和柬埔寨，正面临潜在的挑战和机遇。
Challenges for Chinese Solar Companies in Southeast Asia
Chinese-owned solar companies in Southeast Asia, especially in Thailand, Vietnam, Malaysia, and Cambodia, are encountering significant challenges. These nations are becoming crucial markets for solar energy; however, increased competition and regulatory hurdles are complicating their operations.
Regulatory Hurdles
Many Southeast Asian governments are implementing stricter regulations for foreign investments in renewable energy sectors. This development may hinder Chinese companies’ ability to navigate local laws and establish a strong foothold in these growing markets.
Market Competition
Beyond regulatory challenges, the competition among local and international solar companies is intensifying. To succeed, Chinese firms must innovate and adapt their strategies to meet regional demands while maintaining cost-effectiveness and securing partnerships with local entities.
Source : EU’s solar plans in SE Asia caught in US-China trade war
Business
Malaysia Launches ‘Luxury’ Durian Exports to China as Indonesia Eyes Market Opportunities
Malaysia has begun exporting fresh durian to China, targeting high-end consumers with 40 tonnes shipped in phases. China, the largest durian buyer, may eventually import from Indonesia pending compliance with standards.
Malaysia’s Fresh Durian Shipment to China
Malaysia has successfully sent its first shipment of fresh durians to China, aiming to capture the interest of a market largely supplied by Thailand and Vietnam. This shipment includes 40 tonnes released in three phases, as announced by Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup. China represents the world’s largest durian importer, having purchased 1.4 million tonnes last year, with a significant portion sourced from Thailand.
Emphasis on Quality
Malaysian exporters, having met China’s phytosanitary requirements, are focusing on the quality of their products rather than sheer volume. Lim Chin Khee from the Durian Academy states that Malaysian durians are considered luxury items, targeting high-end consumers. The first shipment of 20 tonnes has already reached the Zhengzhou Xinzheng International Airport, fetching prices that can reach 200 yuan (approximately $28) per fruit.
Indonesia’s Durian Prospects
Indonesia is also exploring opportunities in the Chinese durian market, with discussions surrounding compliance to China’s phytosanitary standards ongoing. As reported, Indonesian officials are eager to establish a protocol that could facilitate durian exports, considering the strong demand in China. Lynn Song from ING emphasizes that should these negotiations succeed, Indonesian durians could effectively carve a niche in the burgeoning market.
Source : Malaysia starts ‘luxury’ durian exports to China as Indonesia sniffs the market
Business
Vietnam’s Exports of Fruits and Vegetables to Thailand Surge by 70%
Thailand has become Vietnam’s fourth largest fruit and vegetable market, with exports rising significantly, particularly in durians, as Thailand faces supply shortages due to droughts.
Growth in Bilateral Trade
Thailand has risen to become Vietnam’s fourth-largest market for fruits and vegetables, according to recent customs data from the Vietnam Fruit and Vegetable Association. This shift from sixth place last year is largely attributed to increased demand, particularly for frozen durian. China continues to dominate as the top buyer, importing nearly $2.5 billion worth, a 25% increase.
Rising Imports and Export Dynamics
The United States and South Korea have also contributed to this growth, with imports from Vietnam surging by 31% and 51%, totaling $189 million and $188 million, respectively. Overall, Vietnam’s exports reached an estimated $4.6 billion, a 29% increase, as the country capitalizes on year-round durian cultivation.
Changing Trade Relationships
The trade landscape between Vietnam and Thailand has transformed significantly over the past decade. Thailand, once the leading supplier of fruits and vegetables to Vietnam, saw its imports drop to just $46.5 million in 2023. However, imports have surged 35% this year, reaching $32 million, with popular items including dates and mangosteens.
Source : Vietnam fruit, vegetable exports to Thailand rise by 70% – VnExpress International
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