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SocGen Traders Cut China Counterparty Exposure as Risks Escalate

  • Moving China risk to replicate contracts elsewhere, people say
  • Banks are seeking ways to minimize exposure to Greater China

Societe Generale SA cut its exposure to counterparties on trades in China by about $80 million in the past few weeks as global banks seek to guard against any potential fallout from rising geopolitical risks in the world’s second-largest economy.

It has several hundred million dollars in positions on China’s Financial Futures Exchange, people familiar with the matter said, asking not be identified as the details are private. The French bank has been seeking to replicate those positions elsewhere in Asia, they said.