Shrinking China trade likely to curb S'pore, HK banks' profits

Singapore

THE business of financing China's trade is shrinking, curbing what had been a fast-growing revenue stream for banks in Hong Kong and Singapore over the past decade.

Since reaching a peak of about US$145 billion in June last year, the value of trade loans provided by lenders in the two financial hubs has tumbled 20 per cent due to the slowing Chinese economy and a slump in commodity prices, central bank data show.