HK to monitor banks’ loans to HNA, Wanda

Bloomberg

The Hong Kong Monetary Authority (HKMA) has asked banks in the city for details of their loans to HNA Group Co. and Dalian Wanda Group Co., according to people familiar with the matter.
Lenders were required to submit a survey to the city’s de facto central bank providing information such as total credit extended and outstanding loans to the two companies, said the people. Checks on lending to Chinese conglomerates were stepped up in recent weeks.
The HKMA said it engages in discussions with banks on different issues, without commenting further. It’s common practice for the authority to query banks over their exposures to certain sectors, as it has done with property loans in recent months. While the checks aren’t a guarantee of any regulatory action, the spotlight on real estate did lead to lending curbs in a bid to rein in Hong Kong’s rampant housing market. The move comes at a time when mainland Chinese regulators have also stepped up scrutiny of the companies behind last year’s unprecedented spree of takeovers outside the country.