Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Banking

HSBC CEO sees market impact from Evergrande debt woes

2021 09 23T012207Z 1 LYNXMPEH8M00Q RTROPTP 4 CHINA EVERGRANDE DEBT - Global Banking | Finance

SINGAPORE (Reuters) – HSBC Holdings PLC expects the debt problems involving embattled property developer China Evergrande Group to have an impact on capital markets but does not see any direct impact on the bank, its group CEO said.

“I’d be naive to think that the turmoil in the market doesn’t have the potential to have second-order and third-order impact,” Noel Quinn said at a Bank of America conference on Wednesday, according to a webcast on HSBC’s website.

Evergrande’s situation was “concerning and there is a potential for second and third-order impact, particularly on the capital markets and the bond markets. And we’ve got to stay close to that,” he said.

HSBC’s Hong Kong-listed shares rose 1.8% in early trade on Thursday, in line with gains in the broader market. HSBC’s shares recovered from a 10-month low struck on Tuesday. Hong Kong markets were closed for a holiday on Wednesday.

Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds, in a crucial moment for global investors worried that its malaise could spread beyond the country’s property sector.

Quinn said HSBC was very focused on its commercial real estate business in China and Hong Kong.

“We focus typically on Tier 1 cities, Tier 1 properties, Tier 1 lenders. We have a well-managed exposure there. We’re not unduly concerned by that exposure,” he said.

Quinn said HSBC’s loan loss provisions in Hong Kong and China as outlined in its half-year results https://www.reuters.com/article/us-hsbc-hldg-results-idTRNIKBN2F30A2 indicated that the lender was not concerned about its commercial real estate exposure in China.

“Nothing has happened in the recent weeks that will change that position in my mind for us as a bank, as an institution,” Quinn said.

(Reporting by Anshuman Daga; Editing by Stephen Coates)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post