Hong Kong Banking Sector's Exposures to non-bank Chinese Entities

The Hong Kong Monetary Authority today (2 July) announced the results of its quarterly survey on authorised institutions' exposures to non-bank Chinese entities as at end-March 1999.

According to the survey, total exposures of the banking sector to non-bank Chinese entities at end-March 1999 amounted to HK$280.4 bn, compared with HK$297.5 bn in the previous survey at end-December 1998. This represents 4.1% of the total assets of the banking sector. At end-March 1999, on-balance sheet exposures amounted to HK$255.1 bn and off-balance sheet exposures (including guarantees, letters of credit issued on behalf of the Chinese entities by authorised institutions, and replacement costs of foreign exchange and derivatives contracts) amounted to HK$25.3 bn.

Compared with the position at end-December 1998, the total exposures of the banking sector to non-bank Chinese entities declined by HK$17.1 bn or 5.7%. The reduction was due to a combination of factors, including repayments and reporting errors made by institutions in the previous survey. After adjusting for reporting errors, the actual reduction was HK$15.8 bn.

The local banks' total exposures to non-bank Chinese entities amounted to HK$81.5 bn, a reduction of HK$3.6 bn or 4.2% from the previous survey.

The total exposures were spread among 191 institutions, including both local and foreign institutions.

Hong Kong Monetary Authority
2 July 1999

Annex

Banking sector's exposures to non-bank Chinese entities
(as at end-March 1999)

(in HK$ bn)

* includes red-chips, H-shares, other state, provincial or municipal government owned entities and other entities known to be owned or controlled by Chinese interests.