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

The Hong Kong Monetary Authority today (21 June) announced the results of its quarterly survey on authorised institutions' exposure to non-bank Chinese entities as at end-March 2000.

According to the survey, total exposure of the banking sector to non-bank Chinese entities at end-March 2000 amounted to HK$224.9 bn, compared with HK$233.6 bn in the previous survey at end-December 1999. This represents 3.4% of the total assets of the banking sector. At end-March 2000, on-balance sheet exposure amounted to HK$197.8 bn and off-balance sheet exposure (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$27.1 bn.

Compared to the position at end-December 1999, the total exposure of the banking sector to non-bank Chinese entities declined by HK$8.7 bn or 3.7%. The reduction was mainly caused by repayment of outstanding exposures.

The local banks' total exposure to non-bank Chinese entities at end-March 2000 amounted to HK$72.3 bn, a reduction of HK$0.6 bn or 0.8% from the survey at end-December 1999.

The total exposure was spread among 167 institutions, including both local and foreign institutions.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press) at 2878 1480 or
Caitlin Wong, Manager (Press) at 2878 1687

Hong Kong Monetary Authority
21 June 2000

Annex

Banking sector's exposure to non-bank Chinese entities
(as at end-March 2000)

(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.