Bloomberg News

Everbright Bank Says Its Relationship With Counterparties Normal

June 07, 2013

China Everbright Bank Co. (601818) said its relationships with all trading counterparties are normal after Market News International reported that it failed to repay an interbank loan from Industrial Bank Co. (601166) on time yesterday.

The Beijing-based lender said in an e-mailed statement that its relationship with Industrial Bank is good and that “all liquidity indicators for Everbright Bank are good.”

The 6 billion yuan ($978 million) transaction was between the local branches of the banks and Everbright Bank has already paid a fine, Market News reported, citing three unidentified people. Lu Hongfei, an investor relations officer at Industrial Bank, decline to comment.

The rate lenders charge one another on overnight loans jumped the most in almost two years today as shrinking capital inflows led to a cash squeeze before a three-day holiday.

Shares of Industrial Bank, part-owned by a unit of HSBC Holdings Plc, fell 1.4 percent to 17.10 yuan at the 11:30 a.m. break in Shanghai. Everbright Bank declined 0.7 percent to 2.98 yuan. The benchmark Shanghai Composite Index fell 0.8 percent as money-market rates jumped. Both the one-day repurchase rate and the one-month Shanghai interbank offered rate climbed to 16-month highs today.

To contact Bloomberg News staff for this story: Steven Yang in Beijing at kyang74@bloomberg.net

To contact the editor responsible for this story: John Liu at jliu42@bloomberg.net


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