HONG KONG: The Hong Kong Monetary Authority has asked banks in the city for details of their loans to HNA Group and Dalian Wanda, people familiar with the matter told Bloomberg. Lenders were required to submit a survey to the city’s de facto central bank providing information such as total credit extended and outstanding loans to the two companies, said the people. Checks on lending to Chinese conglomerates were stepped up in recent weeks, one of the people said.
In a statement to Bloomberg, the HKMA said it engages in discussions with banks on different issues, without commenting further. It’s common practice for the authority to query banks over their exposures to certain sectors, as it has done with property loans in recent months. While the checks aren’t a guarantee of any regulatory action, the spotlight on real estate did lead to lending curbs in a bid to rein in Hong Kong’s rampant housing market.
