A Chinese insurer’s asset management arm is reducing holdings of sovereign and state-linked bonds, including those issued by Saudi Aramco, one person said. Meanwhile, traders at a Chinese institution have been instructed to halt dealings in names from the region starting March 3, a separate person said.
Several Chinese financial firms are scaling back exposure to Middle Eastern debt, while regulators are stepping up oversight as the conflict raises concerns over the nation’s extensive lending in the region.
One major bank took a rare step in restricting a drawdown on a bilateral loan to one of the Abu Dhabi government’s financial entities, a person familiar with the matter said. A mid-sized lender is seeking buyers to offload portions of syndicated facilities for Middle Eastern borrowers including sovereign wealth fund ADQ’s US$4 billion deal from last year, another person said, asking not to be identified discussing private matters.
