Singapore banks on watch over Chinese SOE exposure, say analysts
Heightened attention comes with DBS singled out in recent China SOE default at Huachen Automotive
Singapore
SINGAPORE banks may move to review or even cut their exposure to Chinese state-owned enterprise (SOE) customers, as a recent wave of high-profile SOE bond defaults become a wake-up call for lenders counting on government bailouts, say analysts.
This comes as DBS is reportedly the largest foreign creditor to SOE Huachen Automotive Group, which defaulted on a one billion yuan (S$204.3 million) bond in October and has since entered bankruptcy restructuring.
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