Banks in China have been ordered to investigate loans made to the country’s top overseas deal makers, the Wall Street Journal reports.
These include Anbang Insurance Group Co., HNA Group, Fosun International Ltd. (0656.HK) and Wanda Group.
Hong Kong-listed Fosun fell as much as 9.6 percent Thursday afternoon before pulling back to be down 5.7 percent and closing at HK$11.74. The group’s pharmaceutical unit, Fosun Pharma (2196.HK) fell as much as 7.8 percent. And the group’s mainland-listed Shanghai Fosun Pharma (600196.SH) once dropped 8.9 percent.
Market fears were compounded after Wanda’s subsidiary, Dalian Wanda Film (002739.SZ), tumbled by 9.9 percent in the morning. Certain China commercial banks are said to be dumping its bonds, according to reports.
The company requested a trading halt and released a statement saying that the reports are “hearsay”. Wanda Hotels Development (0169.HK) remained flat at HK$0.68.
The Journal reports that the country’s banking regulator has ordered banks to investigate loans made to a group of companies that have aggressively invested overseas in recent years, citing a list issued to banks by the China Banking Regulatory Commission.
“The goal of the examination is to examine the companies’ leverage situations and risks”, according to people with knowledge of the matter.
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