Thursday, February 13, 2014

This innovative market-based interest rates on the mainland and mainland enterprises have limited i

Shenzhen and Hong Kong brewing cross-border red pack loans still need multi Deal with a package of financial | corporate lending specialists red pack - FunBank facilitate red pack Hong Kong's red pack RMB lending red pack rate is determined by the market, the interest rate is usually significantly lower than the mainland. red pack BOC Hong Kong's RMB loans as the current red pack prime interest red pack rate of 5%, while HSBC in Hong Kong's first RMB trade finance loans have interest rates as low as 3.88 percent, lower than the mainland bank loan interest red pack rate of 6.56 percent benchmark. As the Mainland enterprise actual lending rates usually Bijizhunli rate go up to 7% to 10%, more practical spreads.
This innovative market-based interest rates on the mainland and mainland enterprises have limited impact. Once the Shenzhen and Hong Kong loan market circulation of RMB lending rate in Hong Kong is likely to be drawn high, further tempted by HK and then buy the carry trade renminbi, plus loans to go to Hong Kong companies will certainly have a lot of conditions, Mainland enterprises What do not enjoy basic benefits. He also believes that Hong Kong companies also do not need RMB loans, the interest rate is much lower dollar loans. "Only in the onshore offshore interest rates affect interest rates, is unlikely to turn around, RMB deposits in Hong Kong and the Mainland market ratio is still too small, can not react on the mainland, the mainland is not enough to affect the lending rates."
A banking source said the government targets a specific task can not solve the problem of data, but easy to let banks into a vicious circle. The risk of bad debts and bad form to go up, the bank can not digest weakened if efforts to put in Shenzhen, but not conducive to Shenzhen.
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