FairAndUnbiased
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market cap is only 1 way of measuring.
It is not wise and necessary to argue over every point made in a thread. The point in question is correct.
AIIB and NDB are not the biggest banks and they fund infrastructure projects, not trade.You are misreading information on hand.
Following Chinese banks:
The Asian Infrastructure Investment Bank (AIIB)
The New Development Bank (NDB)
- have suspended all manner of transactions with Russia for now due to international obligations and financial dealings. This is clearly stated in following sources:
China-based AIIB freezes lending to Russia and Belarus over Ukraine war
Development bank’s move threatens to strain relations between Beijing and Moscowwww.ft.com
A Statement by the New Development Bank - New Development Bank
The New Development Bank (NDB) applies sound banking principles in all its operations, as stated in its Articles of Agreement. In light of unfolding uncertainties and restrictions, NDB has put new transactions in Russia on hold. NDB will continue to conduct business in full conformity with the...www.ndb.int
Other Chinese banks might be attempting to accommodate Russia in some way or form but:
China’s smaller banks could come under greater scrutiny over financing to Russia as the nation’s biggest lenders are already showing signs of complying with US and European sanctions in a bid to protect their large international footprints.
Within the commercial banking system, one model allowing China to support its strategic partner would be through an institution similar to the Bank of Kunlun, a small and unlisted state-owned lender which continued to finance payments to Iran even after Washington shut the bank out of the dollar market.
Small banks that don’t have any international business exposure are likely to keep financing Russia and service payments, said Chen Zhiwu, a professor of finance at the University of Hong Kong Business School. “For them, the risk of potentially being sanctioned by the US and West European countries is not that high,” he said.
China’s overall willingness to support Russia is still unclear, with President Xi Jinping calling for negotiations over Russia’s invasion of Ukraine. The full extent of Washington and European Union sanctions are also still being worked out. The White House has said “selected” Russian banks would be removed from the Swift messaging system, though officials were also looking at exceptions for the energy sector.
But any candidate for financing to Russian entities sanctioned by the West would need to be willing to give up its access to dollar and euro markets, and face restrictions on foreign investment if they are listed on stock exchanges.
While continuing to deal with Russian entities sanctioned by the US and EU would not be illegal under Chinese or international law – China has not imposed sanctions on Russia and neither has the United Nations – banks run the risk of secondary sanctions if they do business with sanctioned entities, which can cut off their ties with US and EU investors.
“The US government could use secondary sanctions to go after people who are seen as circumventing the primary sanctions,” said Ben Kostrzewa, a consultant at Hogan Lovells in Hong Kong, who formerly handled US-China disputes and negotiations at the Office of the US Trade Representative. “These secondary sanctions, where there is no direct US nexus, will be a risk for Chinese companies if they engage in major transactions with restricted parties.”
Two of China’s largest state-owned banks, Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are restricting financing for purchases of Russian commodities, especially in dollars, according to people familiar with the matter. Both are large banks with close ties to the US and European banking systems, where violation of sanctions could see their operations curtailed.
“Chinese financial institutions, particularly the large ones, they tend to act like EU and US banks do – they follow all the same sanctions programs, they have internal control structures which are very similar,” said Nick Turner, a lawyer at Steptoe & Johnson in Hong Kong who advises companies on sanctions compliance.
China’s small banks come under scrutiny for Russia support
Any financing to Russian entities sanctioned by the West would need to be willing to give up its access to dollar and euro markets, and face restrictions on foreign investment if they are listed on stock exchanges.www.scmp.com
It makes sense.
As for the assertion about Chinese internet cheering for Russia's invasion in one article - how many? Statistics? Do not jump to conclusions on the basis of vocal elements of any country. WE cannot be sure about how Chinese feel about this matter across the board (1.4 billion+ population base). I would not jump to conclusions over feedback received on PDF for instance. I know for sure how diverse Pakistan is behind-the-scenes.
Chinese buying out Russian chocolates will help rescue Russian economy? Best of luck.
Real trade is increasing.
China-Russia trade has surged as countries grow closer
China and Russia have grown increasingly close in recent years, including as trading partners, a relationship that brings both opportunities and risks as Russia reels from tough new sanctions led by the West in response to its invasion of Ukraine.
Secondary sanctions aren't a credible threat because without doing business with China, you aren't doing business. China is bigger than the EU and is the world's biggest trader and producer. Nobody can eat electronic money.
It is actually illegal in China to cooperate with foreign trade restrictions against China so you may see an investigation of the relevant companies soon to see whether they're complying with foreign law over Chinese law while domiciled and operating in China.
China Passes Broad New Anti-Sanctions Law to Counter Foreign Government Sanctions | Insights | Mayer Brown
On June 10, 2021, the Standing Committee of China’s National People’s Congress (“NPC”) passed the Counter Foreign Sanctions Law (the “Law”), which
