|Bid||5.040 x 0|
|Ask||5.050 x 0|
|Day's Range||5.000 - 5.070|
|52 Week Range||3.960 - 5.750|
|Beta (5Y Monthly)||0.51|
|PE Ratio (TTM)||5.25|
|Forward Dividend & Yield||0.32 (6.32%)|
|Ex-Dividend Date||Jun 28, 2021|
|1y Target Est||7.53|
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of ICBC Standard Bank PlcGlobal Credit Research - 30 Apr 2021London, 30 April 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of ICBC Standard Bank Plc and other ratings that are associated with the same analytical unit. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
(Bloomberg) -- It’s been another dramatic week for China Huarong Asset Management Co., with a drip-feed of news offering investors a range of potential outcomes for the company’s future.Fitch Ratings cut its credit rating on China Huarong close to junk on Monday, a day after the company said it would miss a second deadline to report its annual results. The firm used a loan given by a state-owned bank to repay an offshore bond maturing Tuesday, according to a Bloomberg News report. While that suggests state support will be extended to China Huarong’s offshore debt, it raises questions over whether the company is short of cash.With $6.5 billion worth of bonds maturing over the rest of this year, there’s a lot at stake in a successful resolution to China Huarong’s challenges. The company is deeply entwined in the country’s financial system: on Wednesday, the nation’s largest life insurer told investors it was exposed to “non-standard assets” issued by China Huarong, according to Citigroup Inc. analysts.A debt restructuring could force investors to shoulder some of the financial burden, while a default would undermine confidence that the government will back the nation’s state-owned firms in times of stress. On the other hand, an equity injection or full-blown financial bailout would be the best-case scenario for bondholders, but would go against government efforts to make markets punish badly run firms.So far, only the China Banking and Insurance Regulatory Commission has publicly commented on China Huarong, saying the company is operating normally and has ample liquidity. Here are some of the potential outcomes analysts are considering:Larger lossesA ‘bail in,’ rather than a bailout. Even if authorities inject capital into China Huarong, equity and debt holders bear the majority of the costs of restructuring. Either creditors accept a steep haircut or face the possibility of a default.Another example can be seen in the central bank’s rescue of troubled Bank of Jinzhou Co. Chengfang Huida, a fund managed by the central bank, last year bought Bank of Jinzhou assets at a 70% discount. This is “the market price,” the central bank said in its 2020 financial stability report. Separately, the troubled business arm of a top Chinese university may impose haircuts approaching 70% on its unsecured creditors as part of a debt restructuring plan, people familiar with the matter said Wednesday.Bloomberg News earlier reported the government is considering a plan that would see a unit of the People’s Bank of China assume more than 100 billion yuan ($15 billion) of Huarong’s assets. Further details on how the arrangement would work weren’t clear.“How much would Huarong get from selling 100 billion yuan in assets? Based on past experience, not 100 billion yuan,” said Bloomberg economist David Qu.Not so badA milder case for offshore bondholders would involve splitting China Huarong International Holdings Ltd. into bad and good entities, with the dollar debt included in the latter. In this scenario, Beijing would spin off the bad entity, protecting the unit that issues or guarantees most of Huarong’s dollar bonds.A clear separation -- with transparency over which assets are transfered to where -- would help restore investor trust in the good entity. China may still need to make an equity injection to shore up the good entity’s balance sheet. These changes wouldn’t necessarily be pain-free for bondholders, though the costs would be lower than the most bearish scenario.Bloomberg News reported last week that Huarong International is in the process of transferring distressed assets worth tens of billions of yuan into a separate offshore entity called China Huarong Overseas Investment Holding Co.Bullish outcomeA full and speedy bailout without a haircut imposed on investors. There’s no restructuring of the debt; the firm releases its 2020 earnings. The central bank assumes full responsibility for the firm’s finances and authorities clearly state their support for the company.China Huarong commits publicly to honor the keepwell provisions on nearly $22 billion of its dollar bonds. All the overseas units repay the $3.7 billion of outstanding offshore notes due this year in a timely manner.Improved investor confidence and a recovery in the firm’s dollar bond prices allow China Huarong’s international units to raise funds at an affordable cost in the offshore market, easing concern about refinancing.(Adds details about life insurer exposure in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
State-owned Chinese banks, including ICBC and Bank of China, have won approval from the nation's banking regulator to provide funding to the 88.5 billion yuan (US$13.6 billion) National Green Development Fund, taking it a step closer to deploying capital on climate-friendly projects. "China Banking and Insurance Regulatory Commission has approved the bank's participation in investing in the National Green Development Fund," ICBC said in a filing to Hong Kong stock exchange of Monday. ICBC, China's biggest bank by assets, said it would contribute a total of 8 billion yuan to the fund using its own capital. In an earlier filing to the exchange last year, ICBC said that it would pay its contribution in instalments over a period of five years. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. The investment is an important way for the bank to develop and promote green finance while helping to protect the nation's ecology, ICBC said. Bank of China said it would contribute 8 billion yuan to the fund over a period of five years from the date of the fund's establishment, according to its Hong Kong exchange filing last week. First promulgated by President Xi Jinping in 2016, the state-run private equity fund was launched last July by the Ministry of Finance, the Ministry of Ecology and Environment and the Shanghai city government to spearhead investments in green projects and sustainable development. The fund is backed by 26 investors, with the Ministry of Finance as its biggest investor, committing a total of 10 billion yuan. Apart from ICBC and Bank of China, the other lenders involved in the project are China Construction Bank, Agricultural Bank of China and Bank of Communications. Chinese banks have in recent years been active in funding green and sustainable projects through issuing green and climate bonds, with foreign investors actively taking part in the bond sales. China has pledged to scale up its voluntary emissions target under the Paris climate agreement to achieve peak emissions before 2030, and become carbon neutral by 2060. The state fund represents Beijing's move to channel a hybrid of state and private sector capital into green projects that can help combat pollution and fight climate change. The fund will initially finance projects in 11 provinces, including Jiangxi, Hubei, Hunan, Zhejiang and Anhui, along the Yangtze River. Their provincial governments are also sponsors of the fund. Between 2016 and 2020, Beijing allocated 78.3 billion yuan to tackle water pollution, 97.4 billion yuan on air pollution and 28.5 billion yuan on soil pollution, as well as another 20.6 billion yuan to combat environmental problems in rural regions, according to mainland media. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.