News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/rOnWgIotlz
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.11% Oil - US Crude: 0.02% Silver: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ENxA7SeIDF
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.01% 🇨🇦CAD: -0.13% 🇪🇺EUR: -0.13% 🇨🇭CHF: -0.15% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cmUacZR1bK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 87.12%, while traders in France 40 are at opposite extremes with 74.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/WKmgAjSLWR
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/3rXsyuSemd
  • Nasdaq 100 Rebounds as Tapering Fears Ease, Hang Seng and ASX 200 Climb https://www.dailyfx.com/forex/market_alert/2021/06/22/Nasdaq-100-Rebounds-as-Tapering-Fears-Ease-Hang-Seng-and-ASX-200-Climb.html https://t.co/NZxRtj3rNa
  • ANZ Bank sees New Zealand house prices increasing by 0.7% in 2022 - BBG
  • Ever wonder if there are other chart types that can be sued for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/9ZUHvkEw7R
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/aGz502atu0
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/OibiizbywE
China's Growth Slowdown Impacts Top State-Controlled Banks

China's Growth Slowdown Impacts Top State-Controlled Banks

Daniel Dubrovsky, Strategist

Talking Points

  • China’s largest state-controlled banks released their profits for the 2015 fiscal year
  • Lenders took action by cutting last year’s dividend payouts by roughly 0.09 percent
  • Efforts to preserve capital underscore the continuing slowdown of China’s economy

Losing money trading the Chinese Yuan? This might be why.

On Wednesday March 30th, China’s largest state-controlled banks released their fiscal profits for 2015. The Industrial and Commercial Bank of China (ICBC) reported profits of 277.1 billion Yuan versus 275.8 billion in 2014. Second, the Bank of China (BOC) saw revenue at 170.8 billion Yuan versus 169.5 billion in 2014. Lastly, the China Construction Bank (CCB) reported profits at 228.1 billion Yuan compared to 227.8 billion in 2014.

As profits reported at near-flat levels compared to the prior year, the state-controlled banks took action by cutting 2015 dividend payouts to 30 percent from 33 percent in 2014. This means that shareholders of ICBC, BOC and the CCB will receive smaller distributions of company earnings. In addition the amount of bad Chinese loans – those in default or close to it – has been increasing since June 2013 (see chart below).

The Chairman of the Industrial and Commercial Bank of China, Jiang Jianqing, made a few remarks in the aftermath of the earnings report. He mentioned that it was not easy for Chinese banks to grow profits in 2015. Jiang added that the ICBC will explore different ways to clear bad loans. Their top priority is to enhance risk management.

Earlier this month, China’s National People’s Congress conducted its annual meeting to discuss trends and projections about the country’s economy. They forecast a GDP growth range where the lower end of 6.5% would mark the slowest pace of economic expansion since 2009.

China's Growth Slowdown Impacts Top State-Controlled Banks

Data extracted from Bloomberg

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES