PB C TO FOCUS ON NON-BANK LENDERS
Institutions such as trust and investment firms have considerable impact, says central bank
BEIJING merge with China National Nuclear Corp, the second-biggest nuclear power operator in China. The combined firm would have 297 gigawatts (GW) of capacity and 2.04 trillion yuan in assets, according to data published on company and regulator websites, as well as annual reports.
China Datang Corp, one of the five biggest coal-fired generators, may merge with China General Nuclear Power Corp, the largest nuclear power operator, a less regulated form of lending — even as policymakers have tried to rein in leverage in the Chinese economy.
“Though banks still dominate China’s financial system, non-bank financial institutions have considerable influence as well,” said the paper published on the People’s Bank of China website.
“We believe that sufficient attention should be given to international spillover effects of intervention policies, and the impact of nonbank financial institutions to financial stability,” it said.
The paper analysed the impact of changes in China’s stock market and Shenhua Group Corp, the country’s biggest coal miner, as well as a major rail operator and power producer. The combined entity would have 241GW of capacity and 2.09 trillion yuan in assets.
China Huaneng, the country’s biggest coal-fired power producer, may merge with State Power Investment Corp, a coal-fired power firm that also owns State Nuclear Power Technology Corp, the unit building the country’s and financial sector on developed countries — the United States, Britain, Germany and Japan.
“China’s financial sector exerts considerable influence on global financial markets, especially on the Japanese financial sector,” it said.
The central bank has gingerly raised short-term rates recently to contain financial risks and encourage companies to deleverage, though economists expect authorities will move cautiously to avoid hurting economic growth. Reuters
We believe that sufficient attention should be given to international spillover effects of intervention policies, and the impact of non-bank financial institutions to financial stability.
Westinghouse-designed AP1000 third-generation nuclear reactors. The combined entity would have about 262GW of capacity and assets of 1.75 trillion yuan.
“These potential mergers, if confirmed, would be more positive for and possibly lead to reratings for the coal-fired IPPs, which are currently having a difficult time breaking even,” said Daiwa Securities Group Inc analyst Dennis Ip. Bloomberg