In Today’s Talking Points: Egypt’s new Capital Tower District to be majorly financed by Chinese banks, JD.com to finalize fundraising 12 billion yuan in fresh equity in the coming weeks, China’s new central bank head enters, Hayne inquiry continues
Egypt’s new Capital Tower District to be majorly financed by Chinese banks
Egypt’s New $3 billion skyscraper will draw 85% of its funding from Chinese Banks with its development being run by the China State Construction Engineering Corp. The remaining 15% will be funded by Egypt’s Housing Ministry. The loan terms are still under negotiation but is estimated to be roughly 2 to 3 percent. The new capital under development is one of President Abdel-Fattah El-Sisi’s flagship mega-projects and aimed at creating a state of art city to which government ministries can be relocated to.
Read More: The Business Times
JD.com to finalize fundraising 12 billion yuan in fresh equity in the coming weeks
The finance arm of JD.com – China’s second largest e-commerce firm, is looking to further its expansion into securities, banking and insurance. JD’s move to raise fresh equity is another addition to the flurry of Chinese tech firms responding to the growth in demand for digital services particularly in financial markets. JD plans to use the fresh equity to invest in domestic financial institutions and buy licenses to operate in different areas of financial markets.
Read More: CNBC
China’s new central bank head enters
Yi Gang is the new head of China’s central bank, replacing veteran governor Zhou Xiaochuan whom held the position for the last 15 years. As China enters a massive government and economic restructuring period the two main issues for the new governor to tackle will be ensuring financial stability and managing engorged public debt levels. The People’s Bank of China (central bank) isn’t an independent institution like the RBA in Australia, with the PRC’s State Council signing off on many major decisions and policy direction.
Read More: DW
Hayne inquiry continues
The commission into the Australia banking and financial services sector, also know as the Hayne inquiry, continued to scrutinise practices carried out by the ‘Big 4 banks’ in approving home loans and consumer credit. This week it covered the relationship between mortgage brokers and banks. Australia’s $AUD1.7 trillion mortgage market is controlled by the big banks, with approximately half of all mortgages being written by brokers. One revelation was that some banks failed their due diligence in disclosing actual customer expenses in assessing applications. Brokers found guilty of this practice could face dis-accreditation of big bank loans the inquiry warned.
Read More: The Business Times