BOC 40 billion convertible current purchase Huijin absent convertible bonds Subscribe

⊙ journalist Zhoupeng Pan 0 editor Yenjian Commercial Bank mortgage pressure test results have been the focus of media attention. Lihui, the president of BOC, has given optimistic predictions about the mortgage.　　He argues that there is little likelihood of heavy pressure on mortgages. Lihui was held yesterday in the BOC A-share convertible bonds issued online promotion meeting to make the above statement.　　Today is BOC convertible bond requisition Day, the original shareholder can participate in priority placements, online distribution under the network synchronization. The situation of heavy pressure is difficult now according to the CBRC requirements, BOC has conducted stress tests on all real estate loans, including real estate loans to corporate clients and personal housing loans, and tested three scenarios, including mild stress, moderate pressure and heavy pressure, with heavy pressure on home prices falling 30% and benchmark interest rates up 1.08% per cent.　　However, lihui that there would be no more severe scenarios in the test. However, Lihui said, even under severe pressure, BOC's real estate loan non-performing rate will rise by 1.2%, will not have a significant impact on the performance of the whole bank.　　But he believes there is little likelihood of severe stress.　　Lihui that the state's policy measures to control the real estate market are conducive to preventing the bubble of real estate assets, to the sustainable development of real estate industry and the development of banking business.　　BoC said that it would focus on supporting a more developed economy, a relatively stable price fluctuation, a demand-driven region, increased support for low-cost, medium-and small-and medium-sized general commodity housing projects, and selective support for affordable housing projects within the context of local key housing projects. Lihui also said that since this year, according to the CBRC's request, BOC is deploying branches to carry out a pen-and-paper review of the financing platform loans for local governments, and requires branches to take measures such as increasing the principal of debt repayment, increasing the security subject, increasing the effective amount of collateral and withdrawing voluntarily from the loan for potential risks, To slow down and defuse risks.　　The work will be completed by the end of June and the bank will strengthen its communication with the regulatory authorities on the basis of rectification, and provide adequate provision for loans that should be downgraded to undesirable conditions in accordance with international accounting standards and the CBRC's requirements. Huijin's absence of convertible bond subscription for investors concerned about whether the large shareholder Huijin will participate in the follow-up financing of BOC, BOC Vice President Zhou Cai Group did not respond directly, only to retell Huijin's stance. April 30, Huijin Company has issued a notice that will actively support and participate in the various refinancing plans, and will continue to comply with the provisions of the law to fulfill the role of investor representatives, strengthen capital constraints, promote the sound operation of large commercial banks.　　However, Huijin did not participate in the convertible bond subscription.　　The bank's top executives are also expected to maintain a basically stable level of net spreads this year.　　According to the briefing, BOC first quarter net interest margin of 2.04%, and the year 2009 net spreads level flat, compared to 2009 years of the four-year quarter-on-quarter decline 3 basis points, but the net interest income increased significantly. The bank's senior executives also expect the next two-year group to notGood loan rates and credit costs will remain stable.　　On the impact of exchange rate changes on BOC earnings, Lihui said that at the end of 2009, Bank of China's foreign currency net exposure of about 4.4 billion U.S. dollars, has been significantly reduced, so if the renminbi appreciation, the bank's profits will not have a direct impact. According to reports, BOC foreign currency assets accounted for the proportion of total assets at the end of 28%, the appreciation of the renminbi will be converted into renminbi foreign currency assets shrink. Changes in the renminbi's exchange rate will increase the market's demand for hedging products and services, which is the business advantage of the Chinese bank, and the related intermediary business income is likely to increase.