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Hong Kong CFO says town's publicity to Evergrande is "very minimal" – SCMP

© Reuters. FILE PHOTO: The China Evergrande logo is seen outside the China Evergrande Center building in Hong Kong, China, Sept. 23, 2021. REUTERS / Tyrone Siu / File Photo

(Reuters) – Hong Kong's exposure to debt-laden developer China Evergrande Group is "very small," with 0.05% or HK $ 14 billion (US $ 1.79 billion) in bank assets, the South China Morning Post reported on Sunday, citing on the city's finance minister.

"It is very minimal and will not cause us any systemic risk," Treasury Secretary Paul Chan told the newspaper, adding that he concluded after a recent review of the local banking sector's exposure to the company.

Chan also said that with the recent crackdown on some mainland industries, the Hong Kong stock market is inevitably subject to some volatility, but he believes any setback would be temporary.

With liabilities of $ 305 billion

Evergrande has missed two bond interest payments in the past two weeks, bondholders said, and its approximately $ 20 billion offshore debt is trading at distressed levels.

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