SCCCF - China Hong Kong banks slip amid Evergrande crisis - will the pain spread?

Chinese and Hong Kong bank stocks slide as China Evergrande(OTCPK:EGRNF -11.8%), faced with a liquidity crisis, heads for an expected debt restructuring of its more than $300B of liabilities. Chinese real estate developer Sunac China Holdings (OTC:SCCCF) also drops as investors fear that Evergrande's troubles will spill over to others in the nation's real estate sector. The four biggest Chinese banks, which are also the four largest banks in the world, slip — Industrial & Commercial Bank of China (OTCPK:IDCBY -1.2%), China Construction Bank (OTCPK:CICHY -0.9%), Agricultural Bank of China (OTCPK:ACGBY -1.2%), and Bank of China (OTCPK:BACHF -3.4%). And Hong Kong-based banks weaken, as some of them have exposure to Evergrande — HSBC (HSBC -1.1%), Hang Seng Bank (OTCPK:HSNGY +0.1%), and Bank of East Asia (OTCPK:BKEAY -1.8%). UBS strategists and analysts led by Kamil Amin see a credit event at Evergrande as unavoidable, with debt restructuring the most likely result.

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China, Hong Kong banks slip amid Evergrande crisis - will the pain spread?