There's a Big, Bank-led Change Sweeping Asian Debt Markets

The recent woes of Hanjin Shipping Co. underscore a sea change blowing through the Asian debt market as companies, lenders, and investors come to grips with a 'new normal' in corporate financing: banks appear less inclined to prop up national champions in oversupplied sectors.

That's the conclusion from analysts at HSBC Holdings Plc, who say high private-sector leverage combined with stubborn over-capacity in trade- and commodity-orientated sectors, are propelling Asian banks in mature markets to become more conservative in their lending practices. It's a sharp turnaround in a relationship that has traditionally seen banks maintain support for big local companies.