Saturday, 13 July 2013

Water Cheung: China’s Liquidity Crunch Is Nothing Systemic – Just a Wake-Up Call for the Financial Sector

By Samuel Lum, CFA

In this episode of the China’s Liquidity Crunch series, we spoke with Water Cheung, CFA, CEO of Asia Pacific at StormHarbour Securities. An industry veteran working in the Greater China region for decades, Cheung was formerly head of capital markets for China at RBS Global Banking & Markets, head of Greater China banking and markets at DBS Bank, and a managing director at CIBC World Markets. He is a CFA charterholder and is on the advisory board of the Hong Kong Society of Financial Analysts.

CFA Institute: Is the PBOC’s recent actions aimed at curtailing the so-called “shadow banking” activities in China? Have they been effective?

Water Cheung: The PBOC’s recent actions, including the hard-line statement just prior to the sharp spike up in Shibor in late June, appear to be a “wake-up call” for the commercial banks, as well as the shadow finance entities, to tighten up lending practices and manage liquidity in a more conservative manner.

Read the rest of the interview...

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