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
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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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