The China Evergrande logo is seen outside the China Evergrande Center building in Hong Kong, China on September 23, 2021. REUTERS / Tyrone Siu / File Photo

Oct 3 (Reuters) – Hong Kong’s exposure to debt-laden developer China Evergrande Group (3333.HK) is “very minimal” at 0.05%, or HK $ 14 billion ($ 1.79 billion) , bank assets, South China Morning Post reported on Sunday, citing the city’s finance minister.

“This is very minimal and will not cause us any systemic risk,” Financial Secretary Paul Chan told the newspaper, adding that he came to the conclusion after a recent audit of the local banking sector’s exposure to the company. .

Chan also said the Hong Kong stock market was inevitably subject to some volatility amid a recent mainland crackdown on certain industries, but believed any pullback would be temporary.

With liabilities of $ 305 billion, Evergrande has raised fears that its lack of liquidity will spread through the Chinese financial system and spill over into the world, a concern that was assuaged with the Chinese central bank’s wish this week. to protect the interests of home buyers. Read more

Evergrande has missed two bond interest payments in the past two weeks, bondholders said, and its offshore debt, amounting to around $ 20 billion, is trading at troubled levels.

Reporting by Donny Kwok; Editing by Christopher Cushing

Our Standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.