China

Acquisition of cheap financial assets overseas.

The US and European Private Equity (PE) industry has taken repeated hits after the escalation of the financial crisis in September 2008. LBO markets came to a halt through banks’ inability and unwillingness to lend.

China introduces a new category of bonds specifically for SMEs.

Cash-rich Chinese banks and firms are splurging on mergers and acquisitions abroad.

A tsunami of bad loans could sink many Chinese banks.

Time deposit grew 11.8%.

DBS' loan-deposit spread declined -4bp.

China Construction Bank Corporation will sell US$400 million.

The Big Four could see profitability plunge to 5%.

Organic growth rather than acquisitions.

Sustained profit growth.

The best that predatory Chinese banks could do is take over a struggling European bank and leave the management in place.

It is expected to decline to a negative growth in 2021.

And total deposits fell by 1.8%.

But underlying trends remain good.

But CCB's net profit increased 12% to RMB51.9bn.