China Asks Banks to Pause New Loans to US-Sanctioned Refiners

China’s financial regulator advised the country’s largest banks to temporarily suspend new loans to five refiners recently sanctioned by the US over their ties to Iranian oil, according to people familiar with the matter.

The National Financial Regulatory Administration asked banks to review their exposure and business dealings with firms including Hengli Petrochemical (Dalian) Refinery Co., one of China’s largest private refiners, while awaiting further guidance, the people said, asking not to be named because the information is private. For now, banks have been guided not to extend new yuan-denominated credit, though they have also been told not to call in existing loans, the people added.