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LIZ MAK

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The time may have finally come for Chinese banks to turn away from "non-standard" business following the recent removal of the mandated 75 per cent cap on loan-deposit ratio and last Friday's surprise announcement for a liberalisation of the reserve rate ratio by the People's Bank of China.

Four days after Li Yifei, country chairwoman of Man Group in China, disappeared from the public scene, an insider at the world's largest publicly traded hedge fund has come out to say there is no probe against Man Investments' operations on the mainland.

Last week's yuan liquidity crunch has shone light on the cracks in the Hong Kong Monetary Authority's mechanism for maintaining yuan liquidity.

It is an expensive time to be in the business of yuan banking, especially when the cost of capital is high and a liquidity crunch is putting a squeeze on margins.

Growth in the two darlings of mainland China internet finance - online money market funds and peer-to-peer lending (P2P) - have slowed after last year's freewheeling boom.