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Spending spree is a show of force as the company looks to retain cloud computing edge over Microsoft and Google.
China’s largest state owned bank posted scant gains in earnings for last year as margins weakened.
The European Central Bank will allow Greek banks to make their first shareholder payouts in over a decade as the country emerges from a painful post-crisis restructuring.
China’s protracted property downturn is eroding the balance sheets of the nation’s largest state banks as their bad loans creep up.
Embattled German landlord Adler Group SA has asked its bondholders for permission to sell an unfinished apartment development at a 47% discount to its 2022 valuation, as the company races to repay its vast debt load.
Jun 25, 2018
Bloomberg News
,(Bloomberg) -- When China allowed banks to use 700 billion yuan ($108 billion) more of their deposits on Sunday, they were very clear on where the money should go.
One sector not mentioned was the overheating property market.
Money freed up from previous cuts may have ended up flowing into the housing market, and the design of this new policy seems aimed at preventing that, said Fan Ruoying, a researcher at the Bank of China’s International Institute of Finance in Beijing.
Loans to property developers and household rose 20.3 percent in the first quarter compared with a year ago, and the pace was faster than the overall loan expansion, Fan wrote in a note.
The PBOC aims for 500 billion yuan to be channeled to debt-to-equity swaps, and 200 billion yuan to be freed up for smaller banks to lend to small firms. When they announced the cut on Sunday, the central bank also released detailed instructions to make sure that the money flows to where they want it to.
Funds released from the cut will be closely monitored, with every debt-to-equity transaction documented and submitted for review on a quarterly basis. The record of small businesses financing will also be included in the central bank’s macro-prudential assessment review, according to the statement.
To contact Bloomberg News staff for this story: Miao Han in Beijing at mhan22@bloomberg.net
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger, Karthikeyan Sundaram
©2018 Bloomberg L.P.