HSBC CEO Sees Market Impact Of Evergrande Debt Problems

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SINGAPORE, Sept. 23 (Reuters) – HSBC Holdings PLC expects debt issues involving property developer China Evergrande Group to impact capital markets but see no direct impact on the bank, the bank said. CEO of his group.

“I would be naive to think that market turmoil does not have the potential to have a second and third order impact,” Noel Quinn said at a Bank of America conference on Wednesday, according to a webcast on HSBC. website.

The Evergrande situation was “worrying and there is potential for second and third order impacts, especially on capital and bond markets. And we have to stay close to that, ”he said.

Evergrande faced a deadline Thursday to pay interest on one of its dollar bonds, at a crucial time for global investors fearing its unease could spread beyond the country’s real estate sector.

Quinn said HSBC was very focused on its commercial real estate business in China and Hong Kong.

“We generally focus on Tier 1 cities, Tier 1 properties, Tier 1 lenders. We have a well-managed exposure there. We are not unduly concerned about this exhibition, ”he said.

Quinn said HSBC’s loan loss provisions in Hong Kong and China, as described in its half-year results here, indicated the lender was not concerned about its exposure to commercial real estate in China.

“Nothing has happened in the past few weeks that will change that position in my mind for us as a bank, as an institution,” Quinn said. (Reporting by Anshuman Daga; Editing by Stephen Coates)


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