HSBC CEO sees the impact of Evergrande’s debt problem on the market


HSBC Holdings PLC expects debt problems involving embarrassed real estate developer China Evergrande Group to impact capital markets, but no direct impact on banks, Group CEO said rice field.

“It would be naive to think that market turmoil could have secondary and tertiary implications,” Noel Quinn said at the Bank of America conference Wednesday, according to the HSBC webcast. Stated. Website.

Evergrande’s situation is “concerned and can have secondary and tertiary impacts, especially on the capital and fixed income markets, and we have to get closer to that,” he said. ..

HSBC’s Hong Kong-listed stock rose 1.8% in early Thursday trading. This is in line with the rise in the broader market. HSBC shares recovered from Tuesday’s 10-month lows. The Hong Kong market was closed due to a Wednesday holiday.

Evergrande faced a deadline on Thursday and will pay interest on one of its dollar bonds. It was a decisive moment for global investors to worry that their fatigue could spread beyond the country’s real estate sector.

Quinn said HSBC has a great deal of focus on commercial real estate operations in China and Hong Kong.

“We usually focus on Tier 1 cities, Tier 1 properties, and Tier 1 lenders. There are well-managed exposures. We are not overly concerned about their exposure. Hmm, “he said.

Quinn said HSBC’s allowance for doubtful accounts in Hong Kong and China was outlined in six months. result Lenders have shown that they are not concerned about the exposure of commercial real estate in China.

“In the last few weeks, nothing has happened in our minds as a bank or institution to change that position,” Quinn said.