Hong Kong finance chief says city’s exposure to Evergrande ‘very minimal’ -SCMP

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The brand of China Evergrande is seen at exterior China Evergrande Centre constructing in Hong Kong, China September 23, 2021. REUTERS/Tyrone Siu/File Photograph

Oct 3 (Reuters) – Hong Kong’s publicity to debt-laden developer China Evergrande Group is “very minimal” at 0.05%, or HK$14 billion ($1.79 billion), of banking belongings, South China Morning Publish reported on Sunday, citing town’s finance minister.

“It is extremely minimal and will not trigger us any systemic dangers,” Monetary Secretary Paul Chan , including he had arrived on the conclusion after a current audit of the native banking sector’s publicity to the corporate.

Chan additionally mentioned Hong Kong’s inventory market was inevitably topic to some volatility amid a current mainland crackdown on some industries, however that he believed any setback could be short-term.

With liabilities of $305 billion, Evergrande has sparked issues its money crunch might unfold by means of China’s monetary system and reverberate globally, a fear that has eased with the Chinese language central financial institution’s vow this week to guard homebuyers’ pursuits.

Evergrande has missed two bond curiosity funds previously two weeks, bondholders have mentioned, and its offshore debt, amounting to about $20 billion, trades at distressed ranges.

Reporting by Donny Kwok; Modifying by Christopher Cushing


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