KUALA LUMPUR: Chinese household debt has continued to rise rapidly, reaching 85% of disposable income at end-2018, Fitch Ratings says.In a report issued on Friday it pointed out rising debt servicing costs do not pose near-term risks to financial stability, but will weigh on economic growth in the medium term and this is reflected in its latest GDP forecasts.“Chinese household debt grew by 18.2% last year, slightly slower than in 2017 but still nearly double the rate of nominal GDP growth.“We estimate that household debt rose to about 53% of GDP last year, up from just 18% a decade earlier. This increase was largely driven by mortgage borrowing, but has spread to other products such as credit cards, where the outstanding balance of debt was similar to the US, at about US$1 trillion at end-2018,” it said.Fitch noted the household debt-to-disposable income ratio is lower than most developed markets.But the gap will narrow rapidly, with the ratio rising to close to 100% at the end of this decade if growth rates remain unchecked.The rating agency pointed out the rapid pace of household debt growth is more of a concern than the level.“Closing the gap with international peers would add considerably to China's macroeconomic vulnerabilities, given its already high corporate debt burden.“Rising consumer credit could support economic growth and rebalancing towards consumption in the near term,” it said.In its latest Global Economic Outlook (GEO) published on June 17, Fitch increased its forecast for annual real GDP growth this year slightly, by 0.1pp to 6.2%, as earlier policy easing appeared to have gained traction.But consumer indicators have been relatively soft.The 2Q19's year-on-year growth rate of 6.2%, released by the National Bureau of Statistics on July 15 and in line with its GEO forecast, was consistent with itsview that following a stronger-than-expected first quarter, growth would slow before stabilising.“Rising household debt may lead to overleveraging by individual borrowers, eventually becoming a headwind to growth as debt service costs rise at the expense of other discretionary spending.“We reduced our 2020 growth forecast by 0.1 percentage point to 6.0% in the GEO, and see growth slowing to 5.8% in our 2021 forecast. A sharp correction in property prices is a downside risk, given households' significant exposure to housing loans,” it said.Household debt accounts for just 18% of banks' assets in China, lower than many other APAC jurisdictions.But several medium-sized banks have aggressively expanded their lending in the segment, given continued corporate deleveraging efforts.Ping An Bank stands out, with 84% of its loan increase in 2017-2018 in retail loans, especially credit cards.Among securitised assets in Chinese consumer ABS deals, unsecured consumer lending, which is less regulated than secured lending, exhibits a worse performance.Secured loans, like housing mortgages and auto loans, have been robust despite rising household debt because they benefit from stringent underwriting guidelines stipulated by regulators, and low average loan-to-values provide significant buffers against declines in collateral market value.
July 19, 2019 06:22 UTC
PETALING JAYA: A fake donation letter, supposedly by a civil servants' council claiming Minister in the Prime Minister's Department Datuk Liew Vui Keong is its advisor is making its rounds. "I would like to assert that the letter supposedly issued by MKTR is a fake letter," Tomy said. "This fake letter is the creation of irresponsible parties and Liew denies any involvement with the parties stated," Tomy said. This is the not the first time a fake letter, supposedly issued by MKTR, was used to solicit donations. The letter issued by MKTR claimed that the Public Works Department was seeking donations for the staff of the Works Ministry.
July 19, 2019 06:11 UTC
Hundreds of "friendly" robots that speak multiple languages and sing are being rolled out across hi-tech Singapore, to help clean the city-state's hotels, shopping malls and government buildings. The robots speak all four of multi-ethnic Singapore's official languages – English, Malay, Mandarin, and Tamil – plus Japanese and "Singlish", a local patois that mixes English with words from the myriad local tongues. LionsBot has signed agreements with six cleaning partners to deploy the robots gradually over the coming months as they are produced. The robots also have a serious purpose: to help plug a labour shortage in the rapidly ageing country of 5.6 million people. Ng stressed the robots were not intended to replace human cleaners, but to act as their assistants.
July 19, 2019 06:00 UTC
Eriksen is entering the final year of his contract at Tottenham and could leave for free next summer. "It's difficult for me to comment for the player," Pochettino said when asked about Eriksen's desire to leave the club. "Leaving would be different (if there was a) different result after the final, maybe. Really it's a moment to step out of the club and maybe to leave the club," he said. When I say rebuild, I mean rebuild that mentality that next season we can repeat a similar season.
July 19, 2019 05:15 UTC
KUALA LUMPUR: AmInvestment Research is maintaining its Buy call on Malayan Banking (Maybank) with an unchanged fair value of RM10.60 a share. “We understand that there has been a better traction for business banking loans of late. AmInvest Research also noted that Maybank is not expecting a further overnight policy rate (OPR) cut in 2H19. Hence, net interest margins (NIM) pressure still persists for Maybank Indonesia in the near term. AmInvest Research said for non-interest income (NOII), capital market activities are seen as improving while income from insurance business is likely to remain strong.
July 19, 2019 03:45 UTC
Such anger has prompted a widespread boycott of Japanese products and services, from beer to clothes and travel, disrupting businesses in what was already the worst economic climate for South Korea in a decade. Diplomatic tensions intensified since a South Korean court last year ordered Japanese companies to compensate Koreans who were forced to work for Japanese occupiers during World War Two. On July 4, in apparent retaliation, Japan restricted exports of high-tech materials to South Korea, but denied the move was related to the compensation issue. Tokyo cited "inadequate management" of sensitive exports, with Japanese media reporting some items ended up in North Korea. South Korea buys 61% of Japan's beer exports, spending 7.9 billion yen ($73.13 million) in 2018.
July 19, 2019 03:33 UTC
(Reuters) - Men's and women's teams across all formats of international and first class cricket will be allowed to replace concussed players during matches following a two-year trial in the domestic game, the International Cricket Council (ICC) has said. "Following a two-year trial... in domestic cricket, the ICC approved concussion player replacements in all formats of men's and women's international cricket and for first class cricket worldwide," the ICC said in a statement (https://www.icc-cricket.com/media-releases/1288479) following their annual conference in London. Concussion substitutes have been on trial in Australia's domestic game since the 2016-17 season while the England and Wales Cricket Board adopted the regulations for its four professional domestic competitions in 2018. Cricket Australia (CA) and the Australian Cricketers' Association (ACA) welcomed the ICC's move to expand the rule to cover international cricket. Concussion is a major concern in other sports as well, with rugby's world body considering rule changes to reduce the risk of head injuries.
July 19, 2019 03:33 UTC
For more information visit facebook.com/GALERIPETRONAS or call 03-2051 7770No fixed formVisit Sumo Orientalis to view Nakayama Hitori’s exhibition no fixed form. For more information visit sumaorientalis.com1 healthy living buyIn conjunction with their fourth birthday, Amazin’ Grace has created a limited edition tote bag. For tickets visit thejokefactory.com.my4 music-inspired performancesSoun(d)ance 25The RAW Art Space’s monthly series Soun(d)ance is back for its 25th instalment. For more information visit bobokl.comFlavours of BrazilFor South American classics, head to Alexis Bistro for Flavours of Brazil, featuring artist Xiong. From his high-energy music to some low-down, speak-easy blues, Terry will have you tapping your toes all night.
Source:The Edge Markets
July 19, 2019 03:22 UTC
KUALA LUMPUR: The High Court here has allowed the Federal Government to seize RM48mil from the bank accounts of Tan Sri Larry Low Hock Peng, the father of fugitive businessman Low Taek Jho or better known as Jho Low. The court was informed that a notice for third parties with interests in the asset to come forward and challenge the forfeiture was gazetted on June 17. The monies frozen by the authorities on Hock Peng's accounts were believed to be part of the 1Malaysia Development Bhd (1MDB) probe. The Government had on March 29 filed a civil forfeiture action to freeze seven bank accounts belonging to Hock Peng with the intention to forfeit them, claiming that the money was a result of money laundering activities. Police had issued a warrant of arrest against Hock Peng, whose whereabouts are unknown.
July 19, 2019 03:11 UTC
KUALA LUMPUR: Former premier Datuk Seri Najib Razak expressed his desire to return US$620 million from his private AmBank account to the benefactor from whom the money originated, the defence team showed. Defence lawyer Harvinderjit Singh asked former AmBank managing director, Cheah Tek Kuang, 72, whether he knew about this. “In 2013, you were told the account holder (Najib) wanted to return the money from account 694 to the sender. “I believe Joanna Yu (AmBank relationship manager) must have mentioned [it]. The lawyer was cross-examining Cheah in reference to several BlackBerry Messenger transcripts between Yu and the witness.
Source:The Edge Markets
July 19, 2019 02:48 UTC
KUALA LUMPUR: Shares of KNM Group Bhd advanced 5.7% in early trade Friday on heels of its new US$4.25mil contract. The oil and gas downstream player, one of the most active counters, rose 5.71%, or two sen to 37 sen with 46.9 million shares done. KNM-WB rose 7.55%, or two sen to 28.5 sen.KNM’s wholly owned subsidiary KNM Process Systems Sdn Bhd has accepted a US$4.25mil (RM17.48mil) purchase order from TPSK Consortium. The purchase order is for the supply of shop-assembled large drums for the Petrochemical Complex in South of Vietnam – Package A1 – Olefins Plant. The transaction is expected to contribute positively to KNM’s earnings for the financial years ending Dec 31, 2019 and 2020.
July 19, 2019 02:37 UTC
CHARLOTTE, North Carolina (Reuters) - Arsenal manager Unai Emery said on Thursday that he was planning for the potential departure of club captain Laurent Koscielny while mulling a leadership role for young defender Rob Holding. Emery had labelled him an "important player" earlier this week but has now openly admitted Koscielny could leave. "I want one English player in these five captains,” Emery told a media conference in Los Angeles ahead of the International Champions Cup match against Fiorentina on Saturday. But after Aaron Ramsey and Petr Cech left - and possibly Laurent Koscielny - I will want more. "An English player who grew up in our academy can understand the English spirit and Arsenal values.
July 19, 2019 02:26 UTC
KUALA LUMPUR: The ringgit opened higher against the US dollar on positive sentiment supporting the market, a dealer said. At 9.03am, the ringgit stood at 4.1090/1120 against the US dollar from Thursday’s close of 4.1130/1150. The dealer said the higher ringgit was also driven by the rise in global oil prices. Meanwhile, Ambank has forecast another two rate cuts in 2019 for Indonesia following its central bank's move to reduce its policy rate by 25bps yesterday. It added that its focus is on the US Federal Reserve's policy rate decision at end July, and placed a 60% probability on a 50bps cut.
July 19, 2019 02:15 UTC
KUALA LUMPUR: Shares in Scomi Group Bhd jumped more than 22% in early trade Friday after receiving RM42mil loans from two new shareholders. It is currently the most active counter with over 89.3 million shares traded. Scomi-WB surged 57.14%, or two sen to 5.5 sen with 78.77 million shares done. The fresh capital will be injected into Scomi by underwriting the proposed rights issue which is fixed at 18 sen per share. The company said should the cash call be fully subscribed, the two investors would take part in the proposed restricted rights issue.
July 19, 2019 02:15 UTC
WASHINGTON: The worldwide non-military drone market, dominated by manufacturers in China, will triple in size to US$14.3bil (RM58.80bil) in sales over the next decade, a study released on Wednesday said, even as US officials warn of national security risks. In May the Department of Homeland Security warned US firms of the risks to company data from Chinese-made drones, according to a notice reviewed by Reuters. Chinese drone manufacturer DJI, which is at the centre of the criticism, called the security concerns "false" and "misguided". The leading market segment for drones, the study said, is industrial inspection, which includes industries such as construction, energy and mining. The US Army in 2017 stopped its usage of DJI drones.
July 19, 2019 02:03 UTC