HSBC chief executive Noel Quinn expressed concerns about the ongoing Evergrande crisis, highlighting the potential for ripples to be felt in asset markets.
«I’d be naive to think that the turmoil in the market doesn’t have the potential to have second-order and third-order impact. Clearly with the changes that are taking place in the Evergrande situation, it’s concerning,» HSBC CEO Noel Quinn said on Wednesday at a Bank of America conference.
«There is a potential for second and third-order impact, particularly on the capital markets and the bond markets, and we’ve got to stay close to that,» according to a webcast on HSBC’s website.
HSBC Exposure
Quinn also expressed no worries about HSBC's loan exposure to Chinese commercial real estate, referring to a review of the bank’s provisions for distressed loans in the sector.
«You wouldn’t have seen anything in that, that indicated we were concerned about our CRE exposure in China,» he said.
Separately, HSBC’s asset management arm is amongst the largest holders of Evergrande debt with over $200 million of its dollar bonds, according to a fund analysis report by Morningstar.
