Banks warned against rebound of bad loans
THE banking regulator warned against a potential rebound of nonperforming loans amid tighter credit controls and rising inflation.
Domestic banks should learn from the U.S. subprime crisis and ensure borrowers were able to meet their mortgage payments, Liu Mingkang, chairman of the China Banking Regulatory Commission, said in a statement Thursday. Banks should also closely monitor to prevent fraud and other illegal activities. Domestic banks reduced their nonperforming loans to a record low 5.8 percent of total lending in the first quarter, from 6.18 percent at the end of last year.
Coalmines shut in quake-affected areas
THE government has shut all coal mines in southwestern Chinese areas that were stuck by the nation’s strongest earthquake in 58 years.
Coal mines in other regions should “actively organize production’’ to ensure domestic supply and stabilize coal prices, the Beijing-based China National Coal Association said in a statement dated Wednesday. It didn’t give any figures for the production that has been shut down since the May 12 quake.
Chalco takes over parent’s assets
ALUMINUM Corp. of China Ltd., the world’s No.4 aluminum maker, said Thursday that it had taken over six units of its State-owned parent worth 4.17 billion yuan (US$595.5 million).
The company, also known as Chalco, has acquired majority holdings in five aluminum product plants and all of Liancheng Longxing Aluminum, which operates more than 300,000 tons of annual primary aluminum capacity. Chalco said it had received confirmation of the transfer from the Beijing Equity Exchange, where the assets were listed.
PICC potential quake claims US$1.89b
DOMESTIC insurer PICC (Group) had received 13.26 billion yuan (US$1.89 billion) in potential life insurance claims in three southwestern Chinese cities, including Sichuan’s provincial capital Chengdu, which were hit hard by Monday’s earthquake, the Securities Times reported Thursday.
PICC had 52,000 life insurance policy holders in the cities of Chengdu, Deyang and Mianyang as of May 13, the newspaper said.
