Posted 11/25/2023, 8:00:00 AM
HSBC Faces Over £6 Billion in China Property Loan Losses, Putting UK Lending at Risk
- HSBC facing over £6.3 billion in losses from unsecured commercial property loans in China, described as a "disaster"
- £3.3 billion overvaluation of HSBC's stake in Chinese bank Hang Seng
- 42% of HSBC’s commercial property loans in China are sub-standard or credit-impaired
- £3 billion of unsecured loans incorrectly booked as real estate lending in Hong Kong
- Losses could force HSBC to cut back on £120 billion in other lending, including in the UK, posing financial contagion risk