Mainland China’s debt risks pose an increasing threat to Hong Kong’s banking system, with analysts fearful that the exposure could have serious implications.
The Hong Kong Monetary Authority HKMA is looking further into how the lenders are exposed to China because the city’s bank are lending increasingly to mainland companies.
Hong Kong banks lent a total of HK$2.867 trillion $370 billion, including trade finance, to mainland companies during the first quarter, according to a June report by the HKMA.
The figure means Hong Kong banks were 10.8% more exposed to the mainland in the first quarter, compared to...
¬ Haymarket Media Limited. All rights reserved.
