HSBC and Standard Chartered could face spillover damage to their profits and balance sheets from the debt crisis enveloping China Evergrande Group even though the two banks say they have limited their direct exposure, analysts have warned. HSBC and StanChart make a big chunk of their profits in China and Hong Kong and they have been the foreign banks most involved in underwriting syndicated loans for developers there.
LONDON (Reuters) -The crisis at indebted developer China Evergrande Group will not curb Standard Chartered's appetite for investing in the country, its Chief Financial officer Andy Halford told a banking conference on Thursday. The Asia, Middle East and Africa-focused lender has no direct exposure to Evergrande and "negligible" indirect exposure, he told the conference hosted by Bank of America. The executive's comments could reassure investors concerned about the potential fallout on British banks, which have invested heavily in China in recent years amid slowing growth in Western markets.
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