17 February 2020

Bank of Chongqing sees no major deterioration in property loans

Bank of Chongqing Co. Ltd. (01963.HK) said Monday it sees no major deterioration in property loans despite mounting worries a softening housing market is exacerbating default risks among some developers.

Risks are confined to some individual cities and have not spread beyond them, Chen Yao, a general manager of the bank’s risk management department, told a Hong Kong media briefing.

The lender has limited exposure to the sector, with loans to developers making up just 3 percent of its overall asset portfolio, she said.

Meanwhile, chairman Gan Weimin said the bank has no plans to raise funds or issue preferred stocks in the next three years thanks to its strong capital base after last year’s listing.

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