RIYADH: Corporate loan activity in China has dropped 58 percent so far this year, according to deals in all currencies. In another development, HSBC announced that it intends to invest as much as $448 million in its Chinese operations. Meanwhile Hong Kong’s shares fell amid uncertainty regarding China’s economy.
? Syndicated and club loans by Chinese firms dropped 58 percent so far this year to reach $45.6 billion, reflecting the slowest annual start in seven years, Bloomberg reported, citing compiled data of deals in all currencies. This comes as the COVID-19 lockdowns and restrictions have been hindering deal cycles, according to Hong Kong-based loan bankers.
? British multinational universal bank and financial services holding company HSBC has announced that it will inject over 3 billion yuan ($448 million) in its Chinese business, Reuters reported, citing CEO Noel Quinn. This comes following a request from HSBC’s largest investor Chinese insurance firm Ping An to explore opportunities to bolster returns.
? Hong Kong’s Hang Seng Index slipped 0.6 percent on Wednesday while the Hang Sang Tech Index, or HSTECH, fell 1.1 percent, Reuters reported. This comes as worries about China’s economy linger even after COVID-19 related restrictions eased off.