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

The Hong Kong Monetary Authority announced today (5 October) the results of its quarterly survey on authorised institutions' exposure to non-bank Chinese entities as at end-June 2000.

According to the survey, total exposure of the banking sector to non-bank Chinese entities at end-June 2000 amounted to HK$215.2 billion, compared with HK$227.1 billion at end-March 2000*. This represents 3.3% of the total assets of the banking sector. At end-June 2000, on-balance sheet exposure amounted to HK$186.5 billion 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$28.7 billion.

Compared to the position at end-March 2000, the total exposure of the banking sector to non-bank Chinese entities declined by HK$11.9 billion or 5.2%. The reduction was mainly caused by loan repayments, although write-offs were also somewhat higher.

The local banks' total exposure to non-bank Chinese entities at end-June 2000 amounted to HK$70.1 billion, a reduction of HK$2.2 billion or 3.0% from the survey at end-March 2000.

The total exposure was spread among 159 institutions, including both local and foreign institutions.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press), at 2878 1480 or
Jasmin Fung, Manager (Press), at 2878 8246

Hong Kong Monetary Authority
5 October 2000

* The previously published figure of HK$224.9 billion has been revised up by HK$2.2 billion as the result of correction of a reporting error.

Annex

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

(in HK$ billion)

* 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.