Month: November 2015

Baixin Bank Will Offer Online Access for Chinese Customers

China CITIC Bank Corp Ltd and Baidu Inc have recently announced plans to set up a direct bank to tap into China’s online finance market. This is China’s first partnership between an Internet firm and a lender. Initially, they plan to invest 2 billion yuan ($313.34 million) in cash as registered capital for the venture that they are calling Baixin Bank.

Baixin Bank would join the leagues of many other Chinese companies that are offering financial products through the Internet and mobile devices. The latest collaboration would combine CITIC’s financial products with Baidu’s online traffic data and reach.

In a joint statement recently, CITIC Chairman Chang Zhenming said that Baixin Bank will “better meet the growing needs” for financial services from small businesses. Baidu Chairman and Chief Executive Robin Li called this venture “an entirely new model of ‘Internet + banking.’”

China Heading for a Slump?

China may be in a slump, according to end of the year figures, raising fears that could influence the global commodity prices and damage British industry. China’s manufacturing sector showed a decline for the third consecutive month in October. Their service sector grew, but at the slowest pace that it has had since 2008’s financial crisis.

The expectations for the manufacturing sector was that the reading would be set at 50, while the actual number was 49.8, below the 50 mark which separates contraction from expansion.

As economists at ANZ Bank said, “As deflation risks intensify, a further RRR cut [the reserves a bank must hold against lending] before the end of this year is still possible.”

Read the entire report here.