Connect with us

Finance

'Unshirkable responsibility': China's financial institutions urged to support property developers

Published

on

'Unshirkable responsibility': China's financial institutions urged to support property developers

An artwork juxtaposing Chinese yuan cash bills with the China’s flag

Javier Ghersi | Moment | Getty Images

China’s financial institutions should provide strong support to the country’s beleaguered real estate sector and not “blindly withdraw” financing for projects facing difficulties, according to a senior Chinese financial regulatory official.

His strongly worded comments follow the Chinese central bank’s largest cut in mandatory cash reserves for banks since 2021. Beijing also recently released a fresh policy mandate aimed at easing the cash crunch for Chinese developers, which have struggled under the crackdown on the sector’s bloated debt.

Advertisement

“The financial industry has an unshirkable responsibility and must provide strong support,” said Xiao Yuanqi, deputy director of China’s National Financial Regulatory Administration, at a press conference in Beijing on Thursday, according to a CNBC translation.

“We all know the real estate industry chain is long and involves a wide range of areas. It has an important impact on the national economy and is closely related to people’s lives,” he added.

China’s real estate troubles are closely intertwined with local government finances since they typically relied on land sales to developers for a significant portion of revenue.

China is ramping up stimulus to boost market confidence — but is it enough?

The property market slumped after Beijing cracked down on developers’ high reliance on debt for growth in 2020, weighing on consumer growth and broader growth in the world’s second-largest economy.

“For projects that are in difficulty but whose funds can be balanced, we should not blindly withdraw loans, suppress loans, or cut off loans,” Xiao said. “We should provide greater support through extending existing loans, adjusting repayment arrangements, and adding new loans.”

Advertisement

Still, Xiao cautioned the latest relaxation of funding guidelines, which is only valid through the end of the year, is designed to be targeted.

“China’s state banks will issue operating property loans to real estate companies on the basis of controllable risks and commercial sustainability,” Xiao said.

“Eligible property developers may then use these loans to repay existing loans of real estate companies and open market bonds they have issued,” he said.

China’s Ministry of Housing and Urban-Rural Development held a meeting Friday morning that emphasized again that local regions could adapt the newly release property policy guidelines as needed, according to official reports.

While not new, the meeting is among several this week — pointing to official efforts to speed up implementation of recent policy announcements.

Advertisement
Bank of America and KraneShares strategists discuss the impact of China's PBOC easing on its markets

Beijing’s stimulus announcement on Wednesday also marked a rare decision to release news at a press briefing, suggesting the Chinese government is signaling its intent at a time when the country’s stock markets are teetering on the edge of capitulation.

Such policy moves are typically only published online and disseminated via state media. But the People’s Bank of China Governor Pan Gongsheng announced the forthcoming reserve ratio requirement cut and real estate policy in person.

Last week, Chinese Premier Li Qiang announced the country’s annual GDP growth figure in his address at the World Economic Forum in Davos — a day before China’s National Bureau of Statistics was scheduled to release the country’s official GDP print and other data.

— CNBC’s Evelyn Cheng contributed to this story.

Finance

Simply Asset Finance reaches $2.6bn loan origination milestone in 2025

Published

on

Simply Asset Finance reaches .6bn loan origination milestone in 2025

Simply Asset Finance has reported that its total loan origination reached £2bn ($2.6bn) in 2025, following its growth and lending activity during the period.

During 2025, the company’s gross loan book increased to £543m and its customer base grew to 13,000.

Advertisement

Access deeper industry intelligence

Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.

Find out more


Additional digital platforms came online, and commercial loans were added to the range of available finance solutions.

Improvements in the company’s own technology and stronger results in various regions contributed to increased efficiency in lending operations and a broader local presence for SME clients.

In July, Simply Asset Finance introduced Kara, an AI-powered virtual agent.

Kara uses the company’s past data to enhance user interactions, streamline internal processes, and speed up decisions on lending applications.

Advertisement

Simply Asset Finance CEO Mike Randall said: “Our growth this year has built on the momentum of 2024, and reaching £2bn is a clear milestone for the business. All our channels have driven that progress, with rising demand for specialist lending helping us expand our footprint and support even more SMEs across the UK.

“Despite a year of challenging economic conditions, small businesses have remained resilient and ready to invest. Kara has been central to meeting demand quickly and efficiently –  and we expect her value to our customers will only grow.

“As we head into 2026, we’re focused on carrying this momentum forward and working with even more brilliant businesses to unlock their potential.”

Last month, Simply Asset Finance became a Patron lender of the National Association of Commercial Finance Brokers (NACFB).

This partnership is aimed at supporting the broker community in the UK and increasing access to asset finance and leasing products through wider distribution. 

Advertisement

The NACFB is known as an independent UK trade association for commercial finance intermediaries, promoting cooperation between lenders and brokers across the sector.

Advertisement


Continue Reading

Finance

Baker McKenzie Welcomes Finance & Projects Principal Matthias Schemuth in Singapore | Newsroom | Baker McKenzie

Published

on

Baker McKenzie Welcomes Finance & Projects Principal Matthias Schemuth in Singapore | Newsroom | Baker McKenzie

Baker McKenzie today announced that leading project finance lawyer Matthias Schemuth has joined the Firm’s Singapore office* as a Principal and Asia Pacific Co-Head of Projects in its Finance & Projects practice, alongside Partner Jon Ornolffson in Tokyo.

Matthias joins the Firm from DLA Piper, bringing more than 20 years of experience in the energy and infrastructure sectors across Asia Pacific. He advises sponsors, developers, commercial banks, multilateral lending agencies, and export credit agencies on the structuring and financing of large-scale projects. His practice also spans international banking, structured commodity and trade finance, with a strong focus on emerging markets. Matthias has been consistently recognised by Chambers Asia Pacific and Who’s Who Legal as a leading project finance practitioner.

James Huang, Managing Principal of Baker McKenzie Wong & Leow in Singapore, said: “We are excited to welcome Matthias to our team. His expertise and proven record in managing teams will be invaluable as we expand our regional and global finance offerings for clients.”

Emmanuel Hadjidakis, Asia Pacific Chair of Baker McKenzie’s Banking & Finance Practice, commented: “Asia Pacific is seeing strong momentum in infrastructure development, energy transition investments, and cross-border project financing, much of it centred in Singapore. Having Matthias on board will further enhance our ability to help clients seize opportunities in the region’s evolving energy and infrastructure markets.”

Steven Sieker, Baker McKenzie’s Asia Chief Executive, added: “Matthias’s appointment underscores Baker McKenzie’s continued commitment to investing in exceptional talent across key markets to support our clients in navigating today’s increasingly complex business and regulatory environment.”

Advertisement

Matthias said: “I’m thrilled to join Baker McKenzie and contribute to its strong growth in Asia Pacific. The Firm’s global reach and local depth provide an unparalleled platform for delivering innovative projects and financing solutions to clients in this dynamic region.”

With more than 2,700 deal practitioners in more than 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm excels in complex, cross-border transactions; over 65% of our deals are multijurisdictional. The teams are a hybrid of ‘local’ and ‘global’, combining money-market sophistication with local excellence. The Firm’s Banking & Finance lawyers are ranked in more jurisdictions than any other firm by Chambers.  

Matthias’s hire continues the expansion of Baker McKenzie’s global team. His joining follows the recent arrivals of Carole Turcotte in Toronto; Tom Oslovar in Palo Alto; Jenny Liu in New York and Palo Alto; Helen Johnson, Mark Thompson, Nick Benson, Kevin Heverin, James Wyatt and Michal Berkner in London; Jan Schubert in Frankfurt; Todd Beauchamp and Charles Weinstein in Washington DC; Dan Ouyang, Winfield Lau, and Ke (Ronnie) Li in Beijing, Shanghai, and Hong Kong; and Alexander Stathopoulos in Singapore.

*Baker McKenzie Wong & Leow is the member firm of Baker McKenzie in Singapore

 

Advertisement

 

Continue Reading

Finance

3 finance stocks to buy on rising 10-year Treasury rates

Published

on

3 finance stocks to buy on rising 10-year Treasury rates
The Federal Reserve gave investors an early Christmas present by lowering interest rates by 25 basis points (i.e., 0.25%) marking its third rate cut this year. In the past, a change like this in the “long end” of the interest rate yield curve has triggered a predictable, investable pattern. Typically, this pattern would be bearish for finance stocks, particularly banks—investors would buy bank stocks when rates rose and sell them as rates fell….
Continue Reading
Advertisement

Trending