China

China's banking regulator has begun soliciting public opinions on a new draft in a bid to improve banks' liquidity risk management and safeguard the safety and stability of China's banking system, reports Xinhua News.

Banks and financial institutions should rethink their traditional network security practices as mobile devices proliferate, bandwidth demand expands and new cyber threats emerge, according to Fortinet, a leading network security provider.

Eleven work groups have been sent to oversee a bank bailout of private firms suffering from a liquidity crunch in a coordinated move to tackle the Wenzhou debt crisis.

Shares of China's banks rallied Central Huijin Investment Ltd started buying shares in the four major State-owned banks. But analysts said that the small increase in the benchmark Shanghai exchange index will not extend into a long-term rally. They said that it was only a short-term rebound in the A-share market, which fell to a 30-month low of 2,344.79 on Monday. Industrial and Commercial Bank of China Ltd gained 1.5 percent in Shanghai, the most in six weeks. China Construction Bank Corp, Agricultural Bank of China Ltd and Bank of China Ltd all climbed more than 2 percent The four banks did better in Hong Kong, where they are also listed, with ABC jumping 12 percent and the other three rising at least 5.8 percent. Central Huijin Investment Ltd, set up to hold government stakes in the banks, raised its holdings in the big four banks in the secondary market on Monday after the banks' valuations dropped below the level hit during the financial crisis in 2008. Central Huijin said it will continue with "related market operations" over the next 12 months. But it didn't say how much it will invest and whether it will buy the shares in Hong Kong or Shanghai. "The move by Central Huijin is a signal that the government has decided to take measures to prop up the stock market," said Wang Jianhui, chief economist with Southwest Securities Co Ltd. "But the effect will be limited because what investors worry most about are the fundamentals of the Chinese and global economies, which have not shown signs of improving." Xu Guangfu, an analyst with Xiangcai Securities Co Ltd, was more optimistic. He estimated that the rally would continue for as long as two months, with the index increasing 200 to 300 points. An analyst with a major foreign investment bank in Shanghai, who declined to be identified, interpreted Central Huijin's purchase as a move to raise its ownership, motivated by concern that the banks' repeated offerings will dilute its holdings.

The sovereign wealth fund’s support for state-owned banks spurred HKSE rally.

The Agricultural Bank of China recorded cross-border RMB settlement volume of RMB121 billion by end of August, including an increase of RMB89.15 billion or increase rate of 1156% in 2011.

ICBC's aggregate assets in overseas subsidiaries rose 37.2% over the end of 2010 to USD 103.869 billion at the end of June. In the January-June period of 2011, overseas subsidiaries of ICBC posted a USD 735 million pre-tax gain, rising 43.0% year-on-year and chalking another historic high. As related by an executive with ICBC, up to end of June, the Bank has 220 overseas subsidiaries in 29 countries/regions and a global network of 1,516 correspondent banks in 134 countries/regions spreading over five continents of Asia, Africa, Europe, America and Australia for the better delivery of services to customers in different markets across the world.

The lender sticks to its promise not to seek a rights offer to raise additional capital within two years from its IPO.

ICBC electronic banking posted a turnover of over RMB 100 trillion during the first six months of this year, up 21.8% year-on-year. Of which, turnover of Personal Internet Banking and Mobile Banking rose 37.1% and 387%. ICBC keeps on top of the domestic league table.

ICBC, with an aim to provide a variety of financial services to all customers, has formulated a range of special service solutions and taken various measures to improve the quality of services this year's Golden Week of "October First".

The new-generation asset and liability management system developed independently by Agricultural Bank of China Limited has been formally rolled out.

ICBC saw a strong growth trajectory in its RMB business, with a turnover in the first half of 2011 trebled last year's to RMB 406 billion, RMB 280.4 billion in cross-border RMB settlement, RMB 120.6 billion in trade finance.

The 209 outlets of Tibet Branch of Agricultural Bank of China Limited has been interconnected.

Chinese banks and neighbor banks should enhance cooperation between Asia and Europe amd the rapid development of Xinjang, said Mr. Che Yingxin, Chairman of the Agricultural Bank of China.

The Taiwanese bank seeks to benefit from MOU with the Chinese bank to expand its operations in the Mainland.

Total assets also increased by 19.9% to a whopping RMB 95.3 trillion as of end-2010.