Hong Kong's exposure to Evergrande 'very minimal': finance chief

Melbourne

HONG Kong's exposure to debt-laden developer China Evergrande Group is "very minimal" at 0.05 per cent, or HK$14 billion (S$2.44 billion), of banking assets, South China Morning Post reported on Sunday, citing the city's finance minister.

"It is very minimal and won't cause us any systemic risks," Financial Secretary Paul Chan told the newspaper, adding that he had arrived at the conclusion after a recent audit of the local banking sector's exposure to the company.

He also said that Hong Kong's stock market was inevitably subject to some volatility amid a recent mainland crackdown on some industries, but that he believed any setback would be temporary.

With liabilities of US$305 billion, Evergrande has sparked concerns its cash crunch could spread through China's financial system and reverberate globally, a worry that has eased with the Chinese central bank's vow last week to protect homebuyers' interests.

Evergrande has missed two bond interest payments in the past two weeks, bondholders have said, and its offshore debt, amounting to about US$20 billion, trades at distressed levels. REUTERS