HSBC Warns of China Headwinds, More Real Estate Loan Losses
- Lender took $160 million of provisions against China property
- China is crucial to HSBC’s strategy to expand in Asia region
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HSBC Holdings Plc, the largest foreign bank in China, warned of further potential hits from the nation’s battered real estate market as defaults continue to climb amid a worsening Covid outbreak.
“It’s a big call to say that we’ve seen the worst,” Ewen Stevenson, HSBC’s chief financial officer, said in an interview with Bloomberg News. “Do I think that there could be further provisions this year? Yes, it’s possible.”