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Top Banks Pull Back From China Metal Financing After Crises

  • JPMorgan, ICBC Standard Bank cut credit lines to traders
  • The two banks are key lenders to China’s commodities sector
Updated on

JPMorgan Chase & Co. and ICBC Standard Bank Plc are cutting back on financing to China’s troubled metals trade, adding pressure to a sector already hit hard by a struggling economy. 

At least three Chinese metal trading companies have had credit lines frozen or reduced by either of the banks in recent weeks, according to people familiar with the matter. The lenders have pulled back after a liquidity crisis emerged at top copper trader Maike Metals International Ltd., said the people, who asked not to be identified discussing private information.