Wednesday, October 27

Hong Kong asks banks to report exposure to Evergrande-Bloomberg

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Hong Kong’s central bank has asked lenders to report their exposure to debt-laden China Evergrande Group on concerns over potential systemic risks to the region’s financial system, Bloomberg reported on Tuesday, citing people familiar with the matter.

The Hong Kong Monetary Authority queried lenders in the city last week, giving them 24 hours to respond on their financial commitments to China’s most indebted developer, both in terms of lending and derivatives, Bloomberg reported It’s at least the second time in recent months the authority took an interest in how much banks are exposed to Evergrande.

(Reporting by Kanishka Singh in Bengaluru; Editing by Kim Coghill)