Among the banks at risk of a sell-off, Citi suggests, is DBS Group Holdings because it has performed better than the other local banks and the Hong Kong banks. In Taiwan, Citi says Chailease International Finance Co has the highest exposure to mainland China which accounts for 36% of its loans. Fubon Bank has more exposure than its Taiwan bank peers through its China and Hong Kong units, Citi adds.
On Friday Sept 24, The Edge Singapore reported that none of the local banks have any exposure to China Evergrande Group. However, their shares could be impacted should there be fund redemption or a market sell-off. Among the local banks’ shareholders are funds and ETFs managed by BlackRock, which is also exposed to Evergrande's bonds.
A recent Citi report appears to believe that the Singapore and Hong Kong banks have the largest Greater China exposures. “While Hong Kong banks are trading near 2020 lows, Singapore banks in Aug 2021 were close to all-time price highs, and hence we view that they are at risk in a systemic sell-off,” Citi says.
