Business English Lesson – Advanced Level''''s archiveBanking in China pdf

in emerging markets generally, China has been the front-runner in raising new capital in the banking sector, explains Keith Pogson of Ernt & Young... China's financial institutions have

Business English Lesson – Advanced Level's archive

Banking in China

1 While globalization has sparked a buying in

emerging markets generally, China has been the

front-runner in raising new capital in the banking sector,

explains Keith Pogson of Ernt & Young

spell

spill

spree

spray

2 China's record-breaking performance in raising more

than US$46bn is all the more stunning given that, just two

years ago, the challenge of cleaning up balance sheets

and non-performing loan portfolios was next to

impossible by the international investment community

convinced

deemed

evinced

seemed

3 China's financial institutions have historically suffered

the disadvantage of having dual operating roles: the

authorities viewed them not simply as banks, but also as a

major for providing capital to state-run companies

byway

conductor

factor

vehicle

4 China's banks kicked their structural reforms

ahead of receiving capital injections from the central

government

off

out

through

up

5 During the past five years, they have streamlined their

organizations through closure of less efficient branches

and scaling back their workforces through and early

retirement, among other factors

attrition

elimination

liberation

retribution

6 For example, China Construction Bank and ICBC

closed more than 11,500 and 12,900 branches

respectively, and each reduced its workforce by over

100,000 employees; the financial restructuring of these

banks was in China's banking history

unpreceded

unprecedented

unpreconceived

unpremeditated

7 The initial recapitalization from 2003-2005 amounted to

at least RMB608bn, consisting of an injection of capital

through State Administration of Foreign Exchange (SAFE)

investment, new shares subscribed to by the National

Social Security Fund, and accumulated losses by

the Ministry of Finance

reconciled

refurbished

renovated

replenished

8 In addition to capital injections by the Chinese

government, restructuring was accomplished in a

two-stage -out of non-performing loans; initially,

approximately RMB420bn of Loss-Classified NPLs were

written off from the four banks' accounts

carve

cut

slash

slice

9 Alliances with foreign banks turned out to be a vital

in the success of the IPOs, as they provided

Chinese banks with technical assistance and, most

importantly, equity stakes that offered additional credibility

and reassurance to other investors when the banks came

to market

apparatus

concomitant

incorporation

ingredient

10 From a combined outlay of estimated US$500m

at the end of 2003, foreign investors have now committed

as much as US$18bn to the Chinese banking sector in the

past 12 months alone

neglected

negligent

negligible

negotiable