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3 Oct 2021
HK Finance Secretary Assures City’s Exposure to Evergrande Remains Minimal
The Index Today
Hong Kong has reported that China’s debt-ridden Evergrande Group’s exposure to the nation’s assets is at a minimal level, approximately 0.5% which equals to KH$14 billion of banking assets. Financial secretary Paul Chan said, “It is very minimal and won’t cause us any systematic risks.”
Paul further went to say that the conclusion came after a careful audit was conducted to assess exposure and risks associated with the country’s banking sector.
Honk Kong’s stock market was at risk of being affected by the volatility created by Evergrande debt disaster and ongoing crackdowns on industries. However, the effects are expected to remain temporary.
Evergrande has over $305 billion worth of debt which has threatened to cause a global financial crisis. However, the Central Bank of China has managed to ease tensions of lenders by pledging to protect homebuyers’ interests. Bondholders have stated that the developer’s missed bond interest payments and offshore debt which is valued at $20 billion was trading at lower than usual levels.