Published by Global Banking & Finance Review®
Posted on January 21, 2025
1 min readLast updated: January 27, 2026
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UBS has stopped accepting New World Development securities for margin loans due to governance and debt issues, following Citigroup and HSBC.
(Reuters) - UBS Group has halted accepting certain bonds and shares of Hong Kong property developer New World Development as collateral for margin loans in recent weeks, Bloomberg News reported on Tuesday.
The private banking arms of Citigroup and HSBC Holdings have also stopped lending on New World securities some months ago, the Bloomberg report said, citing people familiar with the matter.
New World Development, UBS Group, Citigroup and HSBC did not immediately respond to a Reuters email seeking comment.
New World, owned by billionaire tycoon Henry Cheng and family, has been facing executive governance issues over the past few months, with heir Adrian Cheng stepping down as CEO in late September and replacement Eric Ma resigning just two months later.
The company swung to an annual loss in 2024 as it grappled with the highest debt among its Hong Kong peers at HK$199 billion ($25.61 billion), JPMorgan data showed in July.
(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Savio D'Souza)
UBS Group has stopped accepting certain bonds and shares of New World Development as collateral for margin loans due to governance issues and financial instability.
The private banking arms of Citigroup and HSBC Holdings have also ceased lending on New World securities in recent months.
New World Development is grappling with executive governance issues and reported an annual loss in 2024, alongside having the highest debt among its Hong Kong peers.
New World Development is owned by billionaire tycoon Henry Cheng and his family.
As of July, New World Development's debt was reported at HK$199 billion, equivalent to approximately $25.61 billion.
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