Chinese banks ' capital adequacy ratios fall

The inherent risk of a sharp increase in credit is accumulating recently, the CBRC has repeatedly demanded the capital adequacy of the progressive banks, and even hinted at the deposit reserve rate of the banks, which has been volatile in recent times. Where does China's banking go, and does bank stocks buy or sell?　　Become a hot topic of investor concern. This report (Wen/table reporter Chenhailing) since the second half of this year, China's regulatory part of the continuous progress of domestic banks to the capital adequacy ratio of regulatory requirements.　　The demand for core capital adequacy ratios for the trade banks that want to bond next year has progressed from 4% to 7%, further increasing the capital adequacy ratios for large banks and small and medium-sized banks to 11% and 10% respectively. Why does the CBRC have this new direction of governance? "The risks inherent in Chinese banks are accumulating.　　"More and more financial observers are proposing. One risk is that credit has soared. In 2009, the level of credit growth for Chinese banks exceeded all speculation at the start of the year.　　Fitch's estimate is that China's new loan balance will reach $1.4 trillion trillion by the end of the year, close to a forecast of 29% of GDP for 2009 years.　　"Such a huge scale of credit growth is bound to create pressure on banks ' internal risk management," said Chu, Fitch's China bank rating director and Senior director. The second risk is that the capital adequacy ratios of Chinese banks in the 2009 years are also under considerable pressure as a result of soaring credit growth.　　According to the quarter-quarter data of the 14 listed banks in the first three quarters of this year, the capital adequacy ratios of major banks in 2009 were significantly lower than in 2008. "To replenish the capital adequacy ratio, banks have increased their issuance of subprime bonds, which could last until 2010," said Yangjie, senior analyst at Joint credit.　　"and will incur more punitive capital requirements to prevent market risk in the future." It's a buying opportunity for a bank. JPMorgan believes that the overreaction of investors creates a good opportunity to buy Chinese banks. Jing Ulrich, managing director of JPMorgan, thinks the current weak market creates buying opportunities. It is too early to be cautious, and we think the fundamentals are still robust and there is room for upward adjustment in banking stocks over the next 3 months.