You are here

Huishan fallout spreads as Chinese bank tumbles 10% in Hong Kong

yang kai.jpg
Jiutai Bank is Huishan Dairy's second-biggest creditor with 1.83 billion yuan (S$372.230 million) of loans, Caixin reported Saturday. Champ Harvest Ltd, Huishan Dairy's largest shareholder, owns 17.9 per cent of the lender's Hong Kong-listed shares, data from the city's exchange show. Champ Harvest is controlled by Huishan Dairy's Chairman Yang Kai.

[HONG KONG] Jilin Jiutai Rural Commercial Bank Corp shares slumped by a record amid concern over its exposure to the embattled dairy-product manufacturer China Huishan Dairy Holdings Co.

Shares of Jiutai Bank, based in the north-eastern Chinese city of Changchun, tumbled 10 per cent in Hong Kong trading to HK$4.74 as of the city's midday break, its biggest drop since it listed 2 1/2 months ago.

A mysterious collapse in Huishan Dairy's shares on Friday that erased about US$4 billion of its market value and prompted a trading halt has hurt other firms linked to the dairy company.

Jiutai Bank is Huishan Dairy's second-biggest creditor with 1.83 billion yuan (S$372.230 million) of loans, Caixin reported Saturday. Champ Harvest Ltd, Huishan Dairy's largest shareholder, owns 17.9 per cent of the lender's Hong Kong-listed shares, data from the city's exchange show. Champ Harvest is controlled by Huishan Dairy's Chairman Yang Kai.

sentifi.com

Market voices on:

Investors are concerned about "how much exposure does Jiutai Bank have, and as Champ is a 15 per cent-plus holder of Jiutai Bank, what are the terms of the exposure," said Andrew Clarke, Hong Kong-based director of trading at Mirabaud.

"Are they more favourable than a normal commercial loan?"

Multiple phone calls to Jiutai Bank's headquarters weren't answered.

BLOOMBERG

Powered by GET.comGetCom