NewThe cat prevails over the mice in China’s money mill, for now
With the central bank’s latest directive, financiers face the challenge of keeping the money mill running as quickly as ever. They’re working hard on that.
The money mill that undergirds many of China’s aggressive -- if not reckless -- assets buying in Hong Kong and overseas may be coming to a temporary halt, if the cat has the upper hand this time.
In an effort to protect the yuan, the People’s Bank of China issued a directive late last month to rein in cross border borrowing that has been fuelling the mill.
On the radar are not only 24 mainland banks but also three overseas lenders -– HSBC, Citibank and Standard Chartered Bank.
Before discussing the cat’s move, let’s recap what the mice have been doing to stockpile their cheese in the past year or two.