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China banks downplay risks after evergrande missed payments

A number of China's publicly-traded banks rushed to assuage investors who are concerned about risks from the deepening crisis at China Evergrande Group.

A Chinese national flag flutters in front of China's central bank, or the People's Bank of China, in Beijing, Sunday, March 10, 2019. Several chinese banks have chosen to downplay risks, after Evergrande missed the first payments which was due on monday. Foto: AP Photo/Andy Wong

At least 10 banks told investors over the past two days that they have sufficient collateral for loans to the developer and the risks are controllable. China Minsheng Banking Corp., which topped the list of Evergrande's principal banks at the end of last year, said on Thursday its exposure to the firm has dropped about 15% from June last year and most of the loans have land, properties or projects under construction as collateral.

China Zheshang Bank Co. said Evergrande borrowings totaled 3.8 billion yuan ($588 million), while Industrial Bank Co. said it has gradually reduced exposure to Evergrande and fully strengthened risk management on existing business with the developer. China Everbright Bank Co. said its outstanding loans to Evergrande amounted to 5.4 billion yuan and the lender has already made provision charges to avoid a major hit in the worst-case scenario, Cailian reported...

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