FINANCE

Hong Kong’s finance chief says city exposure to Evergrande is ‘very low’


Reuters file photo: The logo of China Evergrand can be seen outside the Hong Kong, China Evergrand Center building on September 23, 2021. Reuters / Tyrone Cue / File Photo

(Reuters) – Hong Kong’s exposure to debt-ridden developer China Evergrand Group is 0.05% or HK $ 14 billion ($ 1.79 billion), with “very little” of banking assets, the South China Morning Post reported on Sunday, citing the city’s finance minister.

“This is very low and will not pose any systematic risk to us,” Finance Secretary Paul Chan told the newspaper, adding that he came to this conclusion after a recent audit of exposure to companies in the local banking sector.

Chan added that Hong Kong’s stock market had inevitably faced some instability in the recent mainland crackdown on some industries, but he believed any push would be temporary.

With দায় 3,005 billion in liabilities, Evergrande has expressed concern that its financial crisis could spread through China’s financial system and lead to a global rethink, which has eased concerns this week with the Chinese central bank’s commitment to protecting the interests of homebuyers.

EverGrand has not paid interest on two bonds in the past two weeks, bondholders say, and its offshore debt, about $ 20 billion, traded at a double-digit level.

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