Chinese Lenders Contribute 1/3 of Global Banking Profits: Ma Weihua

September 12, 2013 Leave a comment

Chinese Lenders Contribute 1/3 of Global Banking Profits: Ma Weihua

09-11 16:54 Caijing

Chinese banks contributed 95.5 percent of indirect financing a decade ago, and the proportion fell to around 60 percent at the end of June.

Chinese banks are among the most profitable in the world, said Ma Weihua, Chairman of Wing Lung Bank Limited on the sidelines of the Davos Forum in Dalian. China is home to 100 of the world’s 1000 biggest banks last year, contributing one third of global profits in the banking sector, according to Ma, who was also former governor of China Merchants Bank. He warned at the same time, though, with new challenges ahead, Chinese banks should “have a sense of crisis” and be ready to embrace reforms. Financial markets excluding banks have developed quickly, he said. The bond market is booming, for example, second only to banks in size. Money has been flowing out of the banks through the financial system, making its way towards wealth management products, which amount to several trillions yuan, and trust loans at nearly 10 trillion yuan, as well as private capital market, which is reportedly worth 4-5 trillion yuan, according to Ma. The challenge of so called financial “disintermediation” is even more severe, Ma said, noting third-part payments. The number of companies with a third-part payment licenses has risen to over 100 in a market worth 2 trillion yuan, eroding the position of banks as a platform for payment, he said. Banks contributed 95.5 percent of indirect financing a decade ago, and the proportion fell to around 60 percent at the end of June.

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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