Liang Gaomei: Hong Kong Bank Strictly Approves Internal Enterprise Loans
At the end of 2016, HNA Group had over 30% of the price in the same district. After bidding for two Kai Tak sites in Hong Kong, it was suspected that it could not obtain bank financing and it had finally resold the site to local developer Hengdi (00012) last month. CPPCC National Committee member and Chong Hing Bank (01111) Vice Chairman and Managing Director Liang Gaomei said in an interview with this newspaper in Beijing that when Hong Kong Bank approves loans from domestic companies, it will strictly examine whether the project is related to the state policy and ensure that the companies are Can allocate funds to repay loans. If the project is successfully sold off, the risk is still under control for the bank.
Determine whether the project is supported by state policy
Liang Gaomei stressed that both banks and the HKMA strictly limit risks and “will not lend you a brick,” and must also consider the borrower’s ability to repay loans, the size of the loan, the location of the project, and the company’s management background, etc. . In the case of mainland companies acquiring M&A projects overseas, Hong Kong banks will also judge whether the project is supported by national policies (such as the Dawan District and the “One Belt and One Road”).
Overseas real estate mergers and acquisitions are not blessed by the country. Liang Gaomei admitted that Hong Kong Bank would be more cautious about borrowing from overseas real estate projects of large-scale domestic enterprises. “To ensure that it can send money out, if you look at the Hong Kong market, if money cannot come, sell it.” (Project)." She pointedly stated that if the project can be sold, the risk to the bank is still controllable. “If the bank itself has no bad debts, it is a pawnshop business," meaning that the collateral has already been assessed before the loan ( For example, land is acceptable.
The National People’s Congress was opened yesterday and Premier Li Keqiang stressed in his work report that financial risks should be prevented. Liang Gaomei explained that the Mainland will minimize its credit risk this year. Enterprises will continue to leverage and banks will not increase their credit. The central government will also implement “window guidance" to require banks to support small and micro enterprises to develop the real economy; central and state-owned enterprises In terms of reforms, the government also strictly limits the scale of issuing bonds to prevent risks arising from excessive borrowing.
The exchange rate of the Hong Kong dollar against the US dollar has weakened repeatedly since last Friday and yesterday it was even weaker. Liang Gaomei believes that the weakening of Hong Kong exchanges is related to the decline of the stock market and the decrease of Beishui. The fall in the market is due to the fact that some investors have left the market to lock in profits, and they have not ruled that foreign investors are ready to withdraw funds. However, as of yesterday’s one-month and three-month interbank interest rates (HIBOR) and London LIBOR levels, there has been no significant increase, reflecting that there are no signs of substantial capital evacuation. “It does not mean that the market will fall. Take away (funds), but acknowledging that investors take a wait-and-see attitude and tend to switch to cash.